CBN to auction T-Bills worth N95.68 billion next week as Bond yields seen moderate…

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In the just concluded week, the absence of CBN T-bills auction at both Primary and Secondary Market and the matured N54.00 billion worth of treasury bills at the Secondary Market, as well as the distribution of the federally collected revenue worth N619.85 billion, boosted liquidity in the financial market. Hence, NIBOR for overnight funds and 3 months tenure buckets moderated to 11.40% (from 15.13%) and 12.92% (from 13.22%) respectively. However 1 month and 6 months rate increased to 12.20% (from 10.47%) and 15.14% (from 14.75%) respectively. Elsewhere, NITTY moved in mixed directions across maturities tracked as investors bought 3 months and 12 months maturities but sold 1 and 6 months maturities – yields on 3 months and 12 months maturities fell to 11.00% (from 12.09%) and 14.49% (from 14.65%) respectively; however, 1 month and 6 months yields rose to 10.77% (from 10.02%) and 14.05% (from 13.79%) respectively.

In the new week, CBN will rollover T-bills worth N95.68 billion, viz: 91-day bills worth N10 billion, 182-day bills worth N17.60 billion and 364-day bills worth N68.08 billion.

We expect their stop rates to fall amid buy pressure. Amid the N204.32 billion bills maturing, we also expect yields to further moderate amid declining stop rates.