The Central Bank of Nigeria will auction N117.55bn worth of treasury bills in the week via the primary market.
T-bills worth N207.55bn are expected to mature via the primary and secondary markets during the week, which more than offsets the N117.55bn T-bills to be auctioned by the apex bank.
These include 91-day bills worth N24.67bn, 182-day bills worth N10bn and 364-day bills worth N82.88bn.
The apex bank had in the previous week issued a total of N17.06bn at the Open Market Operation auction to partly drain system liquidity arising from matured OMO bills worth N30bn.
Last week also saw the Nigerian Inter-bank Offered Rate move southwards amid net inflows worth of N2.94bn. As a result, NIBOR declined for most tenor buckets.
Overnight funds, specifically, NIBOR for one month, three months, six months and 12 months tenor buckets fell to 14.70 per cent from 21.17 per cent, 9.23 per cent from 12.57 per cent, 10.19 per cent from 13.87 per cent, and 10.83 per cent from 15.25 per cent respectively.
Meanwhile, the Nigerian Inter-Bank Treasury Bills True Yield continued to rise for all maturities tracked, as traders demanded higher yields amid expectation of an increase in stop rates.
The resulting movement for one month, three months, six months and 12 months maturities climbed to 2.21 per cent from 2.09 per cent, 3.08 per cent from 2.78per cent, 4.42 per cent from 4.29 per cent and 8.90 per cent from 8.81 per cent respectively.
In anticipation of a northwards movement this week, Analysts at Cowry Asset Management said, “We expect the stop rate for the 364-day bill to increase, while those of 91-day and 81-day bills remain flattish.”
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