N56.30b T-Bills Mature This Week via Secondary Market

February 19, 2018
t-bills market

By Modupe Gbadeyanka

This week, treasury bills worth N56.30 billion will mature via secondary market which will only partly offset the N100 billion FGN bonds auction in the week as well.

Last week, the Central Bank of Nigeria (CBN) through the primary market auctioned treasury bills worth N176 billion, viz: 91-day bills worth N6 billion, 182-day bills worth N30 billion and N364-day bills worth N140 billion; the corresponding stop rate for the 91- day bills fell to 11.95 percent from 12.00 percent while stop rates for the 182-day and 364-day bills were flattish at 13.65 percent and 13.70 percent respectively.

According to Cowry Asset, long-dated T-Bills worth N75.04 billion was also sold via Open Market Operations (OMO).

The inflows worth N266.03 billion in matured treasury bills exceeded outflows worth N251.04 billion in auctioned treasury bills, resulting in liquidity ease.

Consequently, the Nigerian NIBOR for overnight, 1 month, 3 months and 6 months tenor buckets fell w-o-w to 22.63 percent from 50.15 percent, 15.11 percent from 15.56 percent, 15.58 percent from 16.38 percent and 17.69 percent from 17.79 percent respectively.

Elsewhere, NITTY fell for most maturities tracked amid buy pressure: yields on the 1 month, 3 months and 12 months maturities moderated to 14.83 percent from 14.85 percent, 13.52 percent from 14.83 percent and 15.61 percent from 15.81 percent respectively.

However, yield on 6 months maturity rose to 15.60 percent from 15.46 percent.

This week, in anticipation of FAAC disbursements, we expect stability in interbank lending rates amid expected ease in financial system liquidity.

Modupe Gbadeyanka

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.

Leave a Reply

naira depreciate
Previous Story

Naira Loses 0.28% in One Week at I&E Amid 0.9% Rise in Foreign Reserves

Financial Inclusion: SEC, CBN Engage Citizens on Money Market
Next Story

Financial Inclusion: SEC, CBN Engage Citizens on Money Market

Latest from Economy

Don't Miss