Stop rates of 364-day bills to moderate on expected boost in system liquidity

There are expectations that the stop rates of 364-day treasury bills will moderate amid expected boost in financial system liquidity.

In the new week, dealers expect T-bills worth N241.05 billion to mature via the primary and secondary markets.

However, this will exceed T-bills worth N150.05 billion which will be auctioned by CBN via the primary market; viz: 91-day bills worth N3.17 billion, 182-day bills worth N6.00 billion and 364-day bills worth N140.87 billion.

In the new week, “we expect local OTC bond prices to decrease (and yields to increase) as traders react to higher rates in the primary market,” dealers from Cowry Assets Management Limited said.

However, they added that the price of 2037s bond maturities will increase (and yields moderate) as they observed a humped yield curve at that maturity.

Meanwhile, the coupon rates of the three bonds offered for sale by the Debt Management Office (DMO) at the last primary market auction (PMA), Wednesday, October 20, 2021, was raised.

High net-worth individuals and institutional investors who participated in the exercise got more than they might have bargained for as the debt office hopes to keep the demand for the investment tool high.

Before the bond sale, the DMO had said it planned to auction N150 billion worth of the papers in three maturities of 10 years, 20 years and 30 years, all re-opening, at N50 billion each.

However, investors showed significant interest in two of the notes, staking N49.05 billion on the 10-year paper, N80.92 billion on the 20-year note and N120.74 billion on the 30-year bond.

From the analysis of the bond sales, investors offered N250.71 billion on the N150 billion brought to the market, representing 67.14 per cent of over-subscription.

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

We Have Not Had Water Supply In Months ― Abeokuta Residents

In spite of the huge investment in the water sector by the government and international organisations, water scarcity has grown to become a perennial nightmare for residents of Abeokuta, the Ogun State capital. This report x-rays the lives and experiences of residents in getting clean, potable and affordable water amidst the surge of COVID-19 cases in the state…

Selfies, video calls and Chinese documentaries: The things you’ll meet onboard Lagos-Ibadan train

The Lagos-Ibadan railway was inaugurated recently for a full paid operation by the Nigerian Railway Corporation after about a year of free test-run. Our reporter joined the train to and fro Lagos from Ibadan and tells his experience in this report…

[ICYMI] Lekki Shootings: Why We Lied About Our Presence — General Taiwo

The Lagos State Judicial Panel of Inquiry probing the killings at Lekki Toll Gate, on Saturday resumed viewing of the 24hrs footage of the October 20, 2020 shooting of #EndSARS protesters by personnel of the Nigerian Army…