The Federal Government’s Treasury Bills (T-Bills) and Open Market Operations (OMO) bills worth N464 billion are maturing this week, according to official data sourced by our correspondent.
Consequently, the Central Bank of Nigeria (CBN) is expected to conduct a Primary Market Auction on Wednesday during which a total of N115.1 billion covering the 91-day tenor worth N23.4 billion in value, 182-day tenor worth N38.8 billion and the 364-day tenor bills worth N59.9 billion are expected to be rolled over.
According to the official data, the 91-day tenor has an offer amount of N24.37bn and is expected to have a stop rate range, which is the maximum rate at which the CBN is willing to sell, of about 10.90 percent to 11 percent.
In addition, the CBN will conduct Treasury Bills auction in the primary market as it is usual every fortnight during which it requests investors to quote the rates they are willing to pay on the different tenors.
The 182-day tenor has an offer amount of N38.751 billion and a last stop rate of 13.40 percent, compared to the 364-day tenor which has an offer amount of N52 billion and last stop rate of 14.95 percent.
Last week, the T-bills secondary market traded on bullish trend as investors’ anticipation of OMO auctions was unfulfilled as the CBN held-off in a bid to ease pressure on the financial system’s illiquidity.
The market’s indices showed that during the week in review, the average yield across tenors dropped by 0.6 percent to 14.2 percent from 14.9 percent recorded yield in the preceding week.
The April 2019 bills recorded the highest drop as the 04-Apr-19 and the 18-Apr-19 declined by 4.3 percent and by 5.1 percent week-on-week respectively.
