Maturities worth N344.9bn to boost liquidity, lower secondary T-Bills rate

There are expectations among money market participants that maturities worth N344.9billion will hit the system and  the elevated system liquidity levels would continue to drive rates lower in the secondary T-Bills market.

This according to dealers, is also expected to encourage the Central Bank of Nigeria (CBN) to  continue its Open Market Operation (OMO) auctions to control liquidity levels.

In the T-Bills market last week,  the performance was bullish as average rates across benchmark tenors trended lower, down 57basis points (bps) week on week  (W-o-W) to close at 7.2per cent .

The bullish momentum according to participants continued on the back of CBN’s restriction.

The 364-day bill enjoyed the most buying interest as rate declined 100bps to 7.5per cent just as rates on the 91- and 182-day bill declined 40bps and 30bps to 7.4 per cent and 7.3 per cent respectively.

In the Eurobond market, “we expect foreign investors to remain attracted to assets in emerging and frontier markets in the quest for high yields, while for the Naira FGN bonds, we expect increased demand to continue on the back of the restriction of local investors,” dealers from Afrinvest Securities stated in a note to clients.

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