UNLIKE last week, there are expectations that activity level in the money market this week will be bearish amid limited maturing Treasury and Open Market Operation (OMO) bills.
Consequently, market participants say this will be different from the Nigeria Treasury bills (NTB) Primary Market Auction (PMA) subscriptions which spiked to N1.54 trillion as stop rate rises.
Investors saw a rally at the NTB auction held on August 24, with subscriptions rising to N1.54 trillion as stop rates adjusted upward.
This subscription according to dealers, was the highest since the naira redesign period when banks had large idle funds and stopped rates settled above 14percent for 364 days, indicating investors’ responsiveness to higher coupon rates.
However, despite the oversubscription across three tenors, only N283billion was allotted of the exact amount offered. The 91-day, 182-day, and 364-day rates grew by 19basis points (bps), 210bps, and 417bps to 5.19percent, 8.00percent and 13.97percent respectively.
Dealers believed the upward adjustment might temporarily raise the government’s obligations, but this is necessary to attract investors, particularly foreign investors, and reduce negative returns.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
‘We want to go back to school’: Untold story of out-of-school kids in Ibadan
One of the kids who spoke to our reporter, Saheed Abiodun, ran away from home to look for succour in…
Somadila Igboanugo is a medical graduate and a blogger. She recently graduated with a First Class with…
Bride slumps, dies on wedding day in Oyo
A bride, identified as Rebecca Oyedotun, slumped and died on her wedding day in…
Pastor commits suicide over failed love in Nnewi
A man identified as Prosper Obum Igboke, a pastor of a pentecostal church, has committed suicide in…
Cartels, cabals working against success of Power sector, but… — Adelabu
Minister of Power, Adebayo Adelabu, has disclosed that there is overbearing influence of cartels and cabals in…
I want to start having babies, don’t want to play football forever — Super Falcons Star
Super Falcons forward, Francisca Ordega, has hinted at a possible quit from professional football before…
and then