Market Anticipates N540b Maturing Bills Thursday

July 31, 2018
Treasury Bills

By Modupe Gbadeyanka

Treasury bills worth N540 billion are expected to mature on Thursday via both the primary and secondary markets.

According to analysts at Cowry Asset, this is expected to cause relative ease in the financial system liquidity with resultant moderation in interbank rates.

Last week, the Central Bank of Nigeria (CBN) auctioned treasury bills worth N235.93 billion via the Open Market Operations (OMO).

The outflows were offset by N404.32 billion in matured T-bills; coupled with the effect of the FAAC allocation disbursed in the week, NIBOR for overnight tenor bucket moderated to 7.72 percent from 16.75 percent amid sustained financial liquidity ease, in line with our expectation.

However, NIBOR for, 1 month, 3 months and 6 months tenor buckets rose w-o-w to 12.71 percent from 12.63 percent, 13.70 percent from 13.15 percent and 15.49 percent from 14.41 percent respectively.

Elsewhere, NITTY fell for all maturities tracked amid renewed bullish activity: yields on the 1 month, 3 months, 6 months and 12 months maturities moderated to 10.68 percent from 10.75 percent, 11.15 percent from 10.99 percent, 12.58 percent from 12.15 percent and 12.89 percent from 12.60 percent respectively.

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.

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