N495b T-bills Mature as Analysts Predict Rise in PMA Rates

By Modupe Gbadeyanka

On Thursday, treasury bills worth N494.8 billion will mature via the primary and secondary market, which will more than offset T-bills worth N147.63 billion to be auctioned by Central Bank of Nigeria (CBN) via the primary market.

During the PMA, which would be conducted on Wednesday, the apex bank will sell 91-day bills worth N5.85 billion, 182-day bills worth N29.25 billion and 364-day bills worth N112.54 billion.

According to Cowry Asset, these two activities are expected to ease liquidity in the financial system with resultant moderation in interbank rates.

“We also expect stop rates to increase amid rising secondary market yields,” analysts at the Lagos-based Cowry Asset said in their weekly market report.

Meanwhile, last week, the central bank auctioned treasury bills worth N249.10 billion via the secondary market.

The outflows were offset by the inflows from the matured T-bills worth N277.07 billion.

Hence, NIBOR moderated for all tenor buckets amid renewed financial system liquidity ease: NIBOR for overnight, 1 month, 3 months and 6 months tenor buckets declined to 22.00 percent from 22.38 percent, 14.34 percent from 14.40 percent, 14.37 percent from 14.58 percent and 15.14 percent from 15.35 percent respectively.

Meanwhile, NITTY rose for most maturities tracked amid renewed sell pressure: yields on 1 month, 3 months and 12 months maturities rose to 13.01 percent from 12.72 percent, 12.69 percent from 12.66 percent and 15.12 percent from 14.93 percent respectively.

However, yield for 6 months declined to 13.10 percent from 13.19 percent.