Business

Stop rates to decline as CBN rolls over maturing T-bills worth N214.74bn

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2 years ago

There are expectations that stop rates issuances will decline amid ample liquidity pressure as the Central Bank of Nigeria (CBN) rolls over maturing Treasury bills worth N214.74 billion via the primary market.

The T-Bills are viz: 91-day bills worth N1.03 billion, 182-day bills worth N10.55 billion and 364-day bills worth N203.15 billion.

Dealers note that traders’ sentiment will be shaped by the T-bills auction result in the course of the new week.

Also, there are anticipations that the 364-day T-bill rate will moderate, hence, dealers expect local over-the-counter (OTC) bond prices to increase (and yields to decrease) in the coming week.

Meanwhile, the Debt Management Office (DMO) sold treasury bills valued at N406.10 billion across its auctions in July 2023.

This represented a 0.39 percent (N1.59 billion) month-on-month increase in the value of T-bills sold across its auctions in June, which stood at 404.51 billion.

This was revealed in the FMDQ Exchange financial markets monthly report for July released last week.

Similarly, the DMO reopened two 10-year, one 15-year and one 30-year FGN bonds worth N657.84 billion in July 2023. The total sale represented a 182.73 percent oversubscription of the amount offered and a 39.03 percent (N184.68 billion) month-on-month increase on the amount sold in June 2023 (N473.16 billion) for the same FGN Bond maturities.

The average FGN bond coupon rates in July 2023 dipped across 10-year, 15-year and 30-year segments to 13.05 percent, 14.10 percent and 14.30 percent, respectively.

It was also reported that there were no corporate bonds listed on FMDQ Exchange in July 2023 compared to N17.50 billion worth of corporate bonds listed in June 2023.

As a result, the total outstanding value for corporate bonds remained unchanged at N1.76 trillion in the month under review.

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