Interbank rates are expected to be dragged Sought following the Federation Account Allocation Committees (FAAC) inflows being anticipated, coupled with maturing bills worth N215.86 billion.
According to dealers from Cowry Assets Management Limited,in the new week, the Central Bank of Nigeria (CBN) will auction T-bills worth N89.50 billion, viz: 91-day bills worth N5 billion, 182-day bills worth N14.0 billion and 364-day bills worth N70.50 billion.
But these will be offset by maturing bills this week.
“We expect their stop rates to moderate in accordance with recent
trend which has seen the short term papers being highly sought for by investors especially as FAAC inflows are being anticipated coupled with maturing bills worth N215.86 which, we expect, will also drive down interbank rates,” one dealer said.
However, given the overriding aim of the CBN to keep price levels moderate, dealers expect OMOs to continue apace with recent trends to limit the possibility of speculative attacks on the naira, as system liquidity is expected to be buoyed by OMO maturities worth.
Meanwhile, the CBN has indicated that it will raise a total of N1.006 trillion through the issuance of treasury bills in the second quarter of 2019.
This information is contained in the Nigerian Treasury Bills Issue Programme, which was published last week on the CBN website.
According to the breakdown of the issuance calender, a total of N503.16 billion will be raised from rollover programmes with a maturity period ranging from one to three years.
The Bank periodically sells treasury bills in efforts to raise capital for the Federal Government. The issuance of treasury bills is also used as a mechanism to control the circulation of capital in the economy.
and then