N263b Maturing Bills to Boost Financial System Liquidity This Week

By Modupe Gbadeyanka

Financial system liquidity in Nigeria is expected to be boosted this week by the N263.40 billion worth of treasury bills maturing at the market.

Last week, bills worth N309 billion matured at the T-bills market, offsetting the outflow recorded when the when the Central Bank of  Nigeria (CBN) auctioned T-Bills worth N292.62 billion via Open Market Operations (OM0).

According to analysts at Cowry Asset, this consequently made the Nigerian Inter-bank Offered Rate (NIBOR) for all maturities tracked to depreciate; overnight funds, 1 month, 3 months and 6 months tenor buckets fell w-o-w to 9.21 percent from 19.07 percent, 14.49 percent from 16.51 percent, 15.87 percent from 17.26 percent, and 17.38 percent from 18.51 percent respectively.

Elsewhere, NITTY moved in mixed directions across all maturities tracked: yields on the 3 months and 12 months maturities increased to 14.25 percent from 13.43 percent and 15.35 percent from 15.28 percent respectively.

However, yields on the 1 month and 6 months maturities decreased to 12.99 percent from 13.47 percent and 14.84 percent from 14.92 percent respectively.