Interbank rates to moderate on N181.36bn worth of maturing T-bills

THERE are expectations of moderation in interbank rates as treasury bills worth N181.36 billion will mature via Open Market Operation (OMO).

Dealers said Stop Rates moderated for most maturities on sustained demand pressure last week.

In the secondary treasury bills market, performance was bullish as average yield across benchmark tenors trended lower by 18 basis points (bps) when compared week by week (w/w) to close at 1.8per cent.

The 180-day note enjoyed the most demand, resulting in average yield decline to 1.2per cent (vs 2.0per cent in the previous week).

However, the 91 and 364-day bills closed the week flat.

“In the coming week, we expect high liquidity from maturing OMO bills and T-bills to drive rates lower in the secondary market,” a dealer, Afrinvest securities said in an advisory note to clients.

In the new week, the Debt Management Office will issue bonds worth N150 billion, viz: 12.50 per cent FGN APR 2026 (10-Yr reopening) worth N25 billion, 12.50 per cent FGN APR 2035 (15-Yr re-opening) worth N40 billion, FGN JUL 2045(25-Yr new issue) worth N45 billion and 12.98per cent FGN APR 2050 (30-Yr re-opening) worth N40 billion, respectively.

Dealers also expect the bonds stop rates to moderate amid demand pressure.

Similarly, in foreign exchange market, there are expectations that the relatively sustained high crude oil prices, especially bonny light sweet crude, will have positive impact on the exchange rate particularly at the Investors and Exporters (I&E)window.

More so, the widened disparity between different exchange rates should shrink if CBN reintroduces the sale of foreign currency to Bureau De Change, dealers said.

 

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