Analysts Expect CBN to Trim T-Bills Stop Rates Today

April 15, 2020
Analysts Expect CBN to Trim T-Bills Stop Rates Today

By Dipo Olowookere

The Central Bank of Nigeria (CBN) is expected to auction some treasury bills of government at the primary market today, Wednesday, April 15, 2020.

The T-bills worth N58.5 billion would be offered for sale across three maturities at N5.85 billion worth of 91-day bills, N3.50 billion worth of 182-day bills and N49.1 billion worth of 364-day bills.

Commenting ahead of the exercise, which is open to local investors, analysts are of the opinion that stop rates of the bills would be further reduced by the CBN today.

“In the new week, T-bills worth N253.44 billion will mature via the primary and secondary markets which will more than offset T-bills worth N58.49 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N5.85 billion, 182-day bills worth N3.50 billion and 364-day bills worth N49.14 billion.

“Hence, we expect the stop rates to decline marginally amid financial liquidity ease,” analysts at Cowry Asset disclosed.

Meanwhile, last week, the N106.75 billion treasury bills which matured via OMO partly accounted for the sustained financial system liquidity ease.

Hence, in line with expectations, NIBOR moderated for most tenor buckets tracked amid sustained financial liquidity ease: NIBOR for 1 month, 3 months and 6 months tenor buckets further moderated to 6.80 percent from 11.54 percent, 6.79 percent from 12.13 percent and 7.91 percent from 13.36 percent respectively. However, NIBOR for overnight funds rose to 14.92 percent from 3.05 percent.

Meanwhile, NITTY moved in mixed directions across maturities tracked as investors target relatively high yields amid financial liquidity ease: yields on 1 month and 6 months maturities rose to 2.32 percent from 2.16 percent and 3.25 percent from 3.13 percent respectively. On the flip side, yields on 3 months and 12 months maturities fell to 2.19 percent from 2.35%) and 3.72 percent from 4.27 respectively

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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