Rates to moderate on boost in financial system liquidity

There are expectations that stop rates of the 364-day bills will moderate amid expected boost in financial system liquidity.

In the new week, dealers said treasury-bills worth N155.12 billion will mature via the primary and secondary markets which will marginally exceed T-bills worth N150.82 billion that will be auctioned by CBN via the primary market; viz: 91-day bills worth N4.80 billion, 182-day bills worth N7.98 billion and 364-day bills worth N138.03 billion.

“We note that traders’ sentiment would be shaped by the T-bills auction result in the course of the new week,” dealers from Cowry Research anticipate.

They also expect local over the counter (OTC) bond prices to increase (and yields to decrease) this week.

Meanwhile, the bullish momentum at the beginning of the week was not maintained in the Nigerian Treasury Bills market.

At the close of trading on Friday, the market was bullish with selling interest seen across all maturities. Average benchmark yield for T. Bills fell by -2.71 per cent, yields on Open Market Operation (OMO) bills fell by -4.38 per cent while yields on CBN’s special bills dipped by -9.01 per cent.

“The bond market was mixed this week as we saw selling and buying interest across maturities. At the close of trading on Friday, the trend was sustained, overall average benchmark yields closed at 8.31 per cent at the close of trading indicating a week on week (W-on-W) fall of -0.06 per cent.