N295b T-Bills Mature This Week as CBN Woos Investors With Higher Rates

By Modupe Gbadeyanka

Treasury bills worth N294.5 billion will mature this week via the secondary market, which are expected to bring relative ease in the financial system liquidity with resultant moderation in interbank rates as primary market auction by Central Bank of Nigeria is not expected this week.

Last week, the CBN auctioned treasury bills worth N206.94 billion via the primary market and the stop rates for the auctioned T-bills increased for all maturities: the 91-day, 182-day and 364-day stop rates rose to 11 percent from 10 percent, 12.30 percent from 10.50 percent and 13.05 percent from 11.22 percent respectively.

The outflows were offset by N521.72 billion in matured T-bills.

According to Cowry Asset, indicative of the sustained financial system liquidity ease which was in line with expectations was the Standing Deposit Facility (SDF) worth N369.68 billion which outweighed the Standing Lending Facility (SLF) worth N36.95 billion.

Hence, NIBOR for 3 months and 6 months tenor buckets declined to 12.81 percent from 12.99 percent and 14.33 percent from 14.44 percent respectively.

However, NIBOR for overnight and 1 month tenor buckets rose w-o-w to 8.29 percent from 7.5 percent and 11.96 percent from 11.80 percent respectively.

Elsewhere, NITTY rose for most maturities tracked as investors sold their holdings: yields on the 1 month and 6 months and 12 months increased to 10.40 percent from 10.29 percent and 13.15 percent from 12.87 percent and 13.78 percent from 13.28 percent respectively; however, yield on 3 months maturities fell to 11.38 percent.