Connect with us
N316b Maturing Bills to Boost Liquidity This Week N316b Maturing Bills to Boost Liquidity This Week

Economy

N316b Maturing Bills to Boost Liquidity This Week

Published

on

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.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Click to comment

Leave a Reply

The blockchain brings new financing options to the business market. For example, Bitcoin Cash casino has adapted to only using cryptocurrency. This way, it makes it easier for their customers to deposit and withdraw in a BCH casino. Entrepreneurs have taken note of this and are looking to invest more in crypto than in fiat markets.

Like Our Facebook Page

Latest News on Business Post

Trending

%d bloggers like this: