Buoyant System Liquidity Leaves Treasury Bills Market Bullish

By Dipo Olowookere

Transactions at the secondary market for Treasury bills ended bullish on Monday as positive investor sentiment dominated the market.

This occurred as buoyant system liquidity continued to support demand activities by investors at the T-bills space. This made the average treasury bills yields to decline at the close of business to 12.24 percent.

Investors are already gearing up for the Primary Market Auction (PMA) to be conducted on Wednesday by the Central Bank of Nigeria (CBN).

During the exercise, the apex bank will offer a total of N178.4 billion worth of treasury bills to investors.

A breakdown of the anticipated exercise showed that the central bank would sell N5.85 billion worth of the 91-day bills, N26.60 billion worth of the 182-day bills and N145.96 billion worth of the 364-day bills.

Meanwhile, Business Post reports that the money market rates appreciated slightly on Monday by 0.83 percent to 10 percent.

Specifically, the Open Buy Back (OBB) finished at 9.50 percent from 8.92 percent in the last session, while the Overnight rate increased to 10.50 percent from 9.42 percent.

This occurred with the interbank liquidity opened at N266 billion as market participants provided Naira for the weekly CBN Wholesale SMIS auction.

Analysts at Zedcrest Research said rates are expected to remain low for the rest of the week as system liquidity increases via inflows from coupon payments of about N34.7 billion and OMO maturities of N430.2 billion.