By Modupe Gbadeyanka
This Thursday, investors will anticipate treasury bills valued N315.6 billion to mature via the secondary market.
According to analysts at Cowry Asset, this is expected to boost liquidity; “hence we expect interbank rates to trend downwards.”
Last week, the Central Bank of Nigeria (CBN) auctioned treasury bills worth N254.64 billion in the primary market.
Amid elevated political risk, stop rates for the 182-day maturity rose to 13.50 percent from 13.10 percent.
However, the stop rate for the 91-day and 364-day auctioned T-bills remained unchanged at 11.00 percent and 15.00 percent respectively.
The apex bank also sold N134.69 billion worth of bills in the secondary market; hence, the total outflows worth N389.33 billion partly offset the inflows from the matured T-bills worth N446.68 billion. The net inflow resulted in financial system liquidity ease in line with expectation.
Hence, NIBOR for overnight funds, 1 month and 3 months tenure buckets moderated to 11.12 percent from 12.96 percent, 12.14 percent from 13.18 percent and 12.99 percent from 13.49 percent respectively. However, NIBOR for 6 months tenure buckets rose to 15.04 percent from 14.87 percent.
Meanwhile, NITTY continued to move in mixed directions across maturities tracked. While yields on 1 month and 3 months maturities fell to 10.41 percent from 12.06 percent and 11.84 percent from 12.33 percent respectively, yield on the 6 months and 12 months maturities rose to 14.27 percent from 14.06 percent and 17.40 percent from 17.11 percent respectively.
