There are indications that the Central Bank of Nigeria (CBN) will settle Treasury-bills worth N106.92 billion this week, even as dealers said they expect debt auctions worth N100 billion.However, it is expected that both the inflow and outflow will keep interbank interest rates flat at the beginning of the week and may rise on anticipated strain on financial system liquidity.The T-bills market remained bullish last week, with yields declining further by 12 basis points (bps) due to the dearth of the market offers from the continued lack of an Open Market Operations (OMO) issuance by the CBN.
Dealers said most of the offers on the mid to long end of the curve are now at sub-12 per cent discount, and “we expect rates to remain depressed in the medium term, unless the CBN resumes its OMO auction sales at higher discount levels,” one dealer stated.
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