There are expectations that stop rates of the 364-day Treasury Bills will rise slightly in the new week.
This is just as T-bills worth N131.46 billion will be auctioned by the Central Bank of Nigeria (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 N119.61 billion.
Also, Cowry Research dealers expect yields to rise as local over-the-counter (OTC) bond prices decrease.
However, traders may be cautious to bid higher if they sense any bullish turn in the issuance of T-bills by CBN in the new week.
Meanwhile, the Central Bank of Nigeria plans to raise N1.13 trillion via treasury bills for the second quarter of 2023.
This was according to the latest Nigerian Treasury Bill Issue Programme for the second quarter 2023 available on the bank’s website. This is a significant increase from N926 billion raised in the second quarter of 2022. The bills are divided into three tenors of 91-days, 182-days and 364-days with a plan to raise N23.67 billion, N34.7 billion and N1.08 trillion, respectively.
The programme document also revealed that the issuance is for March to May 2023.
A breakdown shows that the CBN plans to raise N531.74 billion worth of T-bills, comprising N4.28 billion worth of 91 days bills, N14.8 billion worth of 182 days bills and N512.66 billion worth of 364 days bills in March.
In April, the Central Bank plans to raise N280.98 billion worth of T-bills comprising N4.8 billion worth of 91 days bills, N12.62 billion worth of 182 bills and N263.56 billion worth of 364 days bills.
In May, the apex bank plans to raise N324.36 billion worth of T-bills comprising N14.48 billion worth of 91 days bills, N7.2 billion worth of 182 bills and N302.68 billion worth of 364 days bills.
READ ALSO FROM NIGERIAN TRIBUNE
and then