There are expectations among participants in the money market that rates will trend lower this week on maturities worth N561.3billion.
Dealers from Afrinvest (Wes) Africa Limited said there will be Open Market Operation (OMO) maturity worth N352.7billion and Treasury-bills worth N208.6billion, both of which will hit the system, resulting in money market rates trending lower.
However, «we believe the CBN will continue with its liquidity mop-up via OMO sales. We have seen that OMO and T-bill yield which usually track each other have now parted direction, the firm stated in a note to clients.
T-bill yields are close to inflation level and dealers think it could tighten further should CBN maintain this current stance much longer.
If this persists, we expect to see more tightening in the yields of long-date FGN bonds and rally in the equities market particularly banking stocks with strong dividend yield,» it further stated.
Meanwhile, the Debt Management Office (DMO) says Nigerian’s total debt profile is N25.7 trillion.
The Director-General of the office, Patience Oniha, announced this while addressing House of Representatives Committee on Public Account on Friday in Abuja.
“As of June 2019, our debt profile is at N25.7 trillion; this includes the federal, states governments and the Federal Capital Territory (FCT).
“We call it the total public debt, out of this total, the federal government is responsible for 80 per cent of the debt,” she said.
Ms Oniha said external borrowing accounted for about 32 per cent of the total debt while the 68 per cent was domestic
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