THERE are expectations that as the Open Market Operation (OMO) maturities worth N532.7billion hit the system this week, there will be moderation in the Nigeria Interbank Offered Rate (NIBOR).
Dealers from for most investment banking firm also said they believe the CBN will continue its liquidity management operations (OMO auction).
“However, the current foreign investors’ apathy towards OMO instruments is a major concern,” the dealers said.
Also, dealers from Cowry Asset Management Limited noted that this week, T-bills worth N147.33 billion will mature via the primary and secondary markets which will more than offset T-bills worth N45.00 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N5.00 billion, 182-day bills worth N10.00 billion and 364-day bills worth N30.00 billion.
“Hence, we expect liquidity ease in the financial system to be sustained with resultant moderation in NIBOR. We also expect the stop rates to decline marginally amid increasing demand for the instruments,” the company stated in a note to investors.
Meanwhile, in the secondary T-Bills market, performance was largely bearish as average yields across benchmark tenors rose 43 basis points (bps) when compared week by week (w/w) to close at 7.9 per cent.
Only the medium-term instrument recorded gains with yields down 8bps to 7.3per cent, the short-and- long term instruments recorded sell-offs with yields rising 22bps and 114bps to 7.3per cent and 9.2per cent respectively.