Traders Anticipate N476b Maturing Treasury Bills Thursday
By Dipo Olowookere
Investors in the treasury bills market are looking forward to bills worth N476.21 billion maturing this week.
The government instrument would be maturing precisely on Thursday, April 12, 2018 against the N528.90 billion bills, which matured last Thursday at the market.
According to analysts at Cowry Asset, the bills would be maturing both at the primary and secondary markets.
This development is expected to create a boost in financial system liquidity with attendant moderation in interbank rate.
“This, however, should warrant increased OMO auctions in order to mop up excess liquidity,” the investment research firm stated in its report.
Also, analysts at Vetiva Research disclosed in their report on Monday morning that the mop up by the Central Bank of Nigeria (CBN) last Thursday indicated the lender’s intention to maintain its grip on system liquidity and “we expect this stance to cap buying today.”
Last week, the apex bank sold a total of N843.89 billion worth T-bills to investors via the primary and secondary markets.
On Wednesday, the central bank sold T-bills worth N95.20 billion at the primary market with the 91-day bill worth N9.52 billion sold at 11.75 percent, the 182 -day instrument worth N17.60 billion auctioned at 12.70 percent, and the 364-day bill worth N68.08 billion traded at 13.04 percent.
Also, treasury bills worth N748.69 billion were sold by the nation’s chief lender via Open Market Operations.