Investors Anticipate N369b Maturing T-Bills at Primary, Secondary Markets

By Modupe Gbadeyanka

Investors in the nation’s treasury bills market are expecting the government’s instrument worth N369.4 billion to mature this week.

Business Post gathered that the T-bills are maturing at both the primary and secondary markets.

The amount would be enough to offset the anticipated treasury bills to be auctioned this week by the Central Bank of Nigeria (CBN).

The apex bank is expected to sell treasury bills valued at N259.97 billion to traders at the primary market.

A breakdown of the expected exercise showed that the central bank will sell 91-day bills worth N7.89 billion, 1B2-day bill worth N30 billion and N364-day bill worth N222.08 billion.

Last week, the CBN sold treasury bills worth N67.7 billion via the secondary market.

According to analysts at Cowry Asset, the outflows were partly offset by inflows worth N56.30 billion in matured treasury bills, resulting in liquidity strain.

Hence, NIBOR for 1 month, 3 months and 6 months tenor buckets rose w-o-w to 15.56 percent from 15.11 percent, 16.55 percent from 15.58 percent and 18.30 percent from 17.69 percent respectively.

However NIBOR for overnight tenor bucket fell w-o-w to 13.30 percent from 22.63 percent.

Elsewhere, NITIY fell for most maturities tracked amid buy pressure: yields on the 1 month, 6 months and 12 months maturities moderated to 13.81 percent from 14.83 percent, 15.37 percent from 15.60 percent and 15.35 percent from 15.61 percent respectively.

However, yield on 3 months maturity rose to 14.49 percent from 13.52 percent.

This week, moderation is expected in the interbank lending rates amid expected ease in financial system liquidity as well as the anticipated FAAC disbursements.