Market Expects Financial System Liquidity Boost as N148b T-Bills Mature

December 27, 2017
Market Expects Financial System Liquidity Boost as N148b T-Bills Mature

By Dipo Olowookere

Treasury bills worth N148.16 billion will this week mature via the primary market and investors and analysts expect this to provide the needed boost in financial system liquidity with resultant decline in interbank lending rates.

The market is expected to resume trading today, Wednesday, December 27, 2017, after the Christmas break observed on Monday and Tuesday.

The N148.16 billion maturing bills this week is coming after bills worth N136.39 billion, viz: N92.56 billion via Open Market Operations (OMO) and N43.84 billion via primary market matured last week at the market.

According to analysts at Cowry Asset, last week, interbank lending rates increased across all tenure buckets amid strain in the financial system liquidity.

During the period, the Central Bank of Nigeria (CBN) auctioned treasury bills worth N656.85 billion via Open Market Operations (OMO).

Consequently, NIBOR for Overnight, 1 month, 3 months and 6 months tenor buckets increased w-o-w to 6.08 percent [from 5.10 percent), 15.26 percent (from 15.13 percent), 16.41 percent (from 16.33 percent) and 18.06 percent (from 17.80 percent) respectively.

Elsewhere, NITTY increased for all maturities tracked following renewed profit taking: yields on the 1 month, 3 months, 6 months and 12 months maturities rose to 11.31 percent (from 11.01 percent), 12.89 percent (from 11.55 percent), 15.20 percent (from 13.22 percent) and 16.41 percent (from 12.85 percent) 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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