By Modupe Gbadeyanka
The Central Bank of Nigeria (CBN) may offer treasury bills at the primary market as high as 16.20 percent before the end of this year.
This is the forecast given by analysts at notable Lagos-based investment company, FSDH Research, in a report released last week.
According to the report obtained by Business Post, the apex bank may want to offer the T-bills at such high stop rate in order to curb the incessant movement of funds out of the country by foreign portfolio investors (FPIs), who are mainly leaving for better yields in advanced economies.
It noted that the apex bank will likely raise the treasury bills yields to manage liquidity and urged investors to “take advantage of the current yields in the long end of the treasury bills market.”
But FSDH Research emphasised that the 16.20 percent stop rate it is projecting is for the one-year instrument, with the 91-day bill expected to hit 11.76 percent, while the 12-day paper should reach 14.12 percent.
Also in the report, the firm is predicting that in November 2018, the 91-day note should be auctioned at 11.30 percent, the 182-day paper at 13.66 percent and the 364-day instrument at 15.93 percent.
Business Post reports that at the last exercise on October 31, 2018, the central bank offered the 91-day bill at 10.98 percent, the 182-day bill at 13.49 percent and the 364-day bill at 14.40 percent.
Adedapo Adesanya