THERE are expectations that in the new week, the Central Bank of Nigeria (CBN) will auction treasury bills worth N7.00 billion, viz: 91-day bills worth N2.00 billion, 182-day bills worth N2.00 billion and 364-day bills worth N3.00 billion.
This is just as stop rates are also expected to decrease marginally, given oversubscription in the recently concluded primary market, auction dealers said.
In the new week, the Debt Management Office said it would issue bonds worth N150.00 billion, viz: 12.75per cent FGN APR 2023 (5-Yr re-opening) worth N50 billion, FGN APR 2029 (10-Yr re-opening) worth N50 billion and FGN APR 2049 (30-Yr re-opening) worth N50 billion respectively.
Dealers expect the bonds stop rates to moderate amid high demand for fixed income securities.
Another dealer said treasury bills maturities worth a combined N73.30 billion Open Market Operation (OMO) (N51.30 billion) and PMA maturities (N22.00 billion), and Federal Government Savings bonds coupons (N13.33 million) – from the 11.418 per cent JUN-2021 and 12.418 per cent JUN-2022 instruments – are expected during the week.
“In combination with the already substantial system liquidity level, we expect the rate to remain moderate during the coming week,” the dealer stated.
As expected, substantial OMO maturities have continued to pressure secondary market yields.
Dealers expect this trend to persist till the end of first quarter (Q1) 2020 over which period a further N5.11 trillion worth of instruments will mature.
“Overall, we expect volumes in the market to pare and market participants to continue to take positions in treasury bonds as has been witnessed over the past few weeks,” a dealer stated.