There are expectations that stop rates will fall amid buy pressure, even as N204.32 billion Treasury bills mature this week.
Dealers from Cowry Assets Management Limited said they also expect yields to further moderate amid declining stop rates.
In the new week, the Central Bank of Nigeria (CBN) will roll over T-bills worth N95.68 billion, viz: 91-day bills worth N10 billion, 182-day bills worth N17.60 billion and 364-day bills worth N68.08 billion sealers revealed.
Meanwhile, the Director-General, Debt Management Office, Ms Patience Oniha, has said the Federal Government plans to borrow N1.6 trillion to fund the 2019 budget. Oniha said the government had been reducing its level of new borrowings, as it dropped from N2.2 trillion in 2017 to N1.6 trillion in 2018.
She spoke in Lagos on Thursday at the Association of Issuing Houses of Nigeria’s semi-annual business lunch. According to her, about N1.6 trillion has been set for borrowing in 2019, and the government adopted a 50:50 approach to spread its borrowing between international and local borrowings.
The FGN Bond market traded slightly bearish as selling interests persisted on the mid to long end of the curve.
Dealers from Zedcrest Capital Limited said they witnessed slight demand on the short end of the curve (2022s), with yields ending the session c.4bps higher on the day.
“We expect the market to remain relatively quiet going into the new week, with market players speculating on the possibility for increased supply of bonds in the new quarter,” they stated.