Secondary market to attract more investors as rates moderate

In anticipation of a further moderation in rates at auctions that will be held this week, dealers say they expect the secondary market to remain more attractive to investors.

The Central Bank of Nigeria (CBN) is scheduled to repay N99.2 billion maturing Treasury bills and only rollover N49.6 billion in line with the Federal Government of Nigeria (FGN’s) debt strategy to reduce domestic borrowings.

Investment bankers from Afrinvest (West) Africa Limited anticipate more Open Market Operation (OMO) issuances as inflows from Wednesday maturing FGN May 2018 bond (N300 billion) as well as N176.3 billion OMO and N99.2 billion T-Bills maturity on Thursday hit the system.

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Another dealer from Zedcrest Capital said, “We expect yields to trend slightly lower opening this week as system liquidity is expected to improve following inflows from  Federation Account Allocation Committee (FAAC) payments into the system on Friday.

The Treasury bills Market traded on a relatively flat note as the CBN mopped up liquidity via OMO and retail foreign exchange (FX) interventions in the interbank market.