By Dipo Olowookere
On Thursday, treasury bills worth N46.25 billion will mature via the secondary market, Business Post reports.
During the week, the Nigerian Inter-bank Offered Rate (NIBOR), which represents the short-term lending rates of selected banks in the market, is expected to trend lower especially with the issuance of N100 billion FGN Bonds by the Debt Management Office (DMO) on Wednesday.
Last week, the Central Bank of Nigeria (CBN) auctioned T-bills worth N58.49 billion via the primary market, with the stop rates going south.
During the exercise, the rates for the 90-day, 182-day and 364-day bills were lowered to 10.15 percent from 10.29 percent, 12.50 percent from 12.60 percent and 12.75 percent from 12.85 percent respectively amid investors’ high demand for fixed income securities.
According to Cowry Asset, the total outflows worth N58.49 billion partly offset the matured bills worth N165.91 billion.
It further said amid renewed financial system liquidity, NIBOR fell for most tenure buckets; specifically, NIBOR for overnight funds rate, one month and 3 months tenure buckets moderated to 10.7 percent from 19.4 percent, 11.81 percent from 11.95 percent and 11.97 percent from 12.42 percent respectively, but NIBOR for 6 months increased to 14.59 percent from 14.45 percent.
Elsewhere, NITTY moderated for all maturities tracked amid renewed buy pressure – yields on one month, 3 months, 6 months and 12 months maturities fell to 10.75 percent from 10.84 percent, 10.69 percent from 11.46 percent, 13.56 percent from 13.74 percent and 14.29 percent from 14.71 percent respectively.
Adedapo Adesanya