WeekAheadT-Bills: Treasury Bill seen mature via OMO as interbank rates rise

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As NIBOR Rises Across All Tenor Buckets on Renewed Liquidity Strain…
In the just concluded week, CBN auctioned Treasury Bills worth N475.92 billion through Open market Operations to mop up matured bills worth N177.05 billion.

Hence, the net outflows resulted in strain in financial system liquidity and resultant increase in interbank lending rates: NIBOR for overnight funds, 1 month, 3 months, 6 months and 12 months tenure buckets revved to 11.65% (from 4.78%), 12.80% (from 10.81%), 13.80% (from 11.96%) and 14.46% (from 11.96%) respectively.

Elsewhere, NITTY fell for across maturities tracked amid renewed bearish activity – yields on 1 month, 3 months, 6 months and 12 months maturity rose to 11.37% (from 9.61%), 12.78% (from 10.59%), 12.97% (from 12.11%) and 14.01% (from 13.20%) respectively.

In the new week, treasury bills worth N176.56 billion will mature via OMO; however, we expect interbank rates to rise further amid anticipated strain in financial system liquidity in the absence of FAAC.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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