Rates to decrease on maturities, boost in system liquidity

Published by

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.

Recent Posts

Paul Chukwuma decries declining standard of education in Anambra

He noted that Anambra, once a leading light in education for over a decade, has…

17 minutes ago

Defection: Nigeria can’t be one-party state — SDP’s Adebayo

Prince Adewole Adebayo, the candidate of the Social Democratic Party (SDP) in the 2023 presidential…

17 minutes ago

‘No one is being coerced,’ Senate leader justifies wave of defections to APC

He equally declared that by accommodating defectors, the Tinubu administration was creating a government of…

49 minutes ago

Borno community decries eight-month power outage

"The blackout has paralyzed economic activity here. Welders, tailors, cold drinks sellers, and barbers have…

55 minutes ago

NITDA advocates partnership in research to unlock Nigeria’s digital potential

In a drive to harness innovation for sustainable national growth and youth empowerment, the Director…

1 hour ago

PFN expresses concern over prevailing economic situation in Nigeria

“We must not continue like this. A change is coming, and though we don’t know…

1 hour ago

Welcome

Install

This website uses cookies.