Stop rates of 364-day bills to moderate amid improved liquidity conditions

THERE are indications that the stop rates of the 364-day Treasury Bills will moderate amid improved liquidity conditions in the system.

In the new week, T-bills worth N131.46 billion will mature and be refinanced by CBN via the primary market; viz: 91-day bills worth N1.74 billion, 182-day bills worth N10.12 billion and 364-day bills worth N143.98 billion.

Cowry Research expects the stop rates of the 364-day to moderate amid the improved liquidity conditions.

Also, there are expectations that the local over-the-counter (OTC) bond prices to increase (and yields to moderate) as prospective investors demand lower rates in tandem with rates in the primary market.

Meanwhile, the bond market ran with the bears on Thursday in reaction to the securitisation of the Federal Government’s N22.7 trillion Ways and Means borrowings from the Central Bank of Nigeria (CBN), raising the total national debt to N68.95 trillion.

Before the approval, the market saw strong buy interest caused by robust liquidity, with demand slanted to short-dated instruments as mid to long-term debt offerings witnessed minimal sell-off.

The sell-offs at the long end of the market intensified on Thursday, particularly the 2049 and 2050 maturities, pushing the average bond yield to 14.23 percent. Analysts expect sell-offs to linger in the market.

READ ALSO FROM NIGERIAN TRIBUNE 

• You’re wrong, our mandate was ‘stolen’ by your party, LP replies Buhari

• I relocated to church, but my wife still comes to fight me, threatens to kill me

• The town where all 6,000 inhabitants live in the same street

• I felt like I won a jackpot when I had my first 5.0 CGP —Oluwapelumi Adejumo, best graduating student, Faculty of Engineering, FUOYE

• Vigilante officer rescues newborn baby from refuse dump in Rivers

• $1.2 million: No more money to evacuate us — Nigerian student trapped in Suda