Market Expects Liquidity Boost as N578.99b OMO Bills Mature

By Modupe Gbadeyanka

Treasury bills worth N578.99 billion are expected to mature this this through the secondary market, analysts at Cowry Asset have said.

This is anticipated to boost liquidity during the week despite the N150 billion long term debts to be floated by the Debt Management Office.

With the two key exercises expected this week, financial experts are forecasting that the interbank rates should trend downwards.

Last week, the Central Bank of Nigeria (CBN) auctioned treasury bills worth N153.38 billion in the primary market.

Despite the closeness of the election, investors went home with lower rates. Stop rates for the 91-day, 182-day and 364-day auctioned T-bills moderated to 10.97 percent from 11.00 percent, 13.40 percent from 13.50 percent and 14.95 percent from 15.00 percent respectively.

The apex bank also sold N545.73 billion in the secondary market; hence, the total outflows worth N699.11 billion partly offset the inflows from the matured T-bills worth N783.33 billion. The net inflow resulted in financial system liquidity ease in line with expectation.

Hence, NIBOR for overnight funds, 3 months and 6 months tenure buckets moderated to 17.56 percent from 18.67 percent, 12.92 percent from 13.28 percent and 14.50 percent from 14.78 percent respectively.

However, NIBOR for 1 month tenure buckets increased to 12.62 percent from 12.01 percent.

Elsewhere, NITTY moderated for most maturities tracked amid renewed buy pressure – yields on, 3 months, 6 months and 12 months maturities fell to 12.25 percent from 12.29 percent,13.65 percent from 13.69 percent. and 17.34 percent from 17.48 percent respectively.

However, yield on the 1 month maturity rose to 12.07 percent from 10.94 percent.