Rates to decrease on maturities, boost in system liquidity

INDICATIONS have emerged that stop rates this week, will decrease marginally due to increased demand amid boost in system liquidity which, in addition to maturing T-Bills worth N41.68 billion, is also expected to result in decline in Nigeria Interbank Offered Rate (NIBOR).

Dealers from Cowry Assets Management Limited said the Central Bank of Nigeria (CBN) will auction T-bills worth N107.05 billion, through 91-day bills worth N5.85 billion, 182-day bills worth N26.60 billion and 364-day bills worth N74.60 billion.

There’ll never be peace in this country, until… —Ango Abdullahi

Another dealer, Afrinvest (West) Africa Limited said inflows from maturing instruments worth N77.7billion (T-bills: N5.8 billion and OMO: N71.9 billion) is expected to influence the movement in rates.

“We also expect sustained demand interest in T-bills to persist barring any OMO auctions by the CBN,” the dealer stated.

In the same vein, dealers from Zedcrest Capital Limited said they expect yields to remain relatively stable, with coupon payments worth N100 billion on the federal government’s  2021 and 2034 bonds expected to sustain investors’ demand for bonds in the market.

Market players are however cautious with yields at current levels, as await release of the Q3 FGN bond calendar by the Debt Management Office (DMO) is being awaited.

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