Interbank rates to trend upwards on expected N100bn DMO auctions

There are expectations that the Nigeria Interbank Offered Rate (NIBOR), may  trend upwards following the Debt Management Office’s (DMO) debt issuance this week.

“In the new week, T-bills worth N46.25 billion will mature via the secondary market.

“However, with the DMO expected to issue N100 billion worth of debts, we expect NIBOR to trend upwards,” one said.

Meanwhile, the CBN on Wednesday last week, conducted the second sale of treasury bills at the primary market in the month of April 2019.

During the primary market auction (PMA), the apex bank offered the debt instrument to investors in three maturities as usual.

• Debt burden:Back to square one

However, the stop rates were reduced by the central bank across the three tenors.

T-bills worth N58.50 billion were auctioned at the exercise with subscriptions valued at N223.62 billion received.

Results of the auctioned showed that of the N5.85 billion worth of 91-day bill, offers valued at N23.97 billion were received and N5.85 billion alloted.

For the 182-day bill, the apex bank auctioned N29.25 billion, but subscriptions worth N37.69 billion were received, with N3.50 billion allotted.

Of the N23.40 billion worth of the 364-day bill, the central bank received offers valued at N161.96 billion, but only N49.14 billion was given to investors.