Market Expect N551b Inflow from Maturing Treasury Bills

By Modupe Gbadeyanka

This Thursday, market players will be anticipating treasury bills worth N551.36 billion that will be maturing both in the primary and secondary markets.

According to analysts at Cowry Asset, this is expected to boost financial system liquidity and result in a corresponding downward trend in NIBOR.

Last week, NITTY rose for all maturities tracked as investors sell down their investment in anticipation of higher yields.

As a result, yields on 1 month, 3 months, 6 months and 12 months rose to 14.78 percent from 13.51 percent, 14.80 percent from 13.45 percent, 14.33 percent from 14.19 percent and 17.33 percent from 17.28 percent respectively.

Also last week, the Central Bank of Nigeria (CBN) sold T-bills worth N241.25 billion in the secondary market and the outflows partly offset the inflows from the matured T-bills worth N684.84 billion.

The net outflow, along with the liquidity effect of N788.14 billion distributed by FAAC, contributed to the Standing Deposit Facility worth N314.90 billion which outweighed the Standing Lending Facility (SLF) worth N127.09 billion. Nevertheless, NIBOR still rose for all the tenor buckets tracked: NIBOR for overnight funds, 1 month, 3 months and 6 months rose to 26.17 percent from 16.13 percent, 14.95 percent from 13.94 percent, 15.32 percent from 14.21 percent and 15.23 percent from 14.81 percent respectively.