Dipo Olowookere
**Lending Rates to Slightly Rise
By Dipo Olowookere
This week, a slight increase is expected in the interbank lending rates as a result of N90.03 billion treasury bills maturing at the market.
Also this week, the apex bank will auction treasury bills worth N176 billion at the primary market auction (PMA), viz: 91-day bills worth N6 billion, 182-day bills worth N30 billion and N364-day bills worth N140 billion.
According to analysts at Cowry Asset, T-bills marginal rates are expected to decline as Federal Government keeps focus on substituting local borrowing for external borrowings and as inflationary pressures continue to moderate.
In addition, the outflows will be partly offset by inflows via maturing bills worth N90.03 billion this week.
Last week, the Central Bank of Nigeria (CBN) sold T-Bills worth N136.70 billion via Open Market Operations (OMO).
The outflows were partly offset by inflows worth N67.68 billion in matured treasury bills, resulting in liquidity strain.
Consequently, the Nigerian NIBOR for overnight, 1 month, 3 months and 6 months tenor buckets rose w-o-w to 50.15 percent from 12.17 percent, 15.56 percent from 14.39 percent, 16.38 percent from 15.12 percent and 17.79 percent from 16.74 percent respectively.
Also, NITIY rose for all maturities tracked amid sell pressure: yields on the 1 month, 3 months, 6 months and 12 months maturities increased to 14.85 percent from 12.40 percent, 14.83 percent from 13.48 percent, 15.46 percent from 14.31 percent and 15.81 percent from 15.45 percent respectively.
