Nigerian Treasury Bills Worth N185bn Set to Expire
The market anticipates financial system liquidity boost as Nigerian Treasury bills (NTB) worth about N185 billion across 91-day, 182-day and 364-day maturities are set to matured or expired.
It is not clear if the Central Bank of Nigeria (CBN) planned to replace or refinance the expired treasury papers at the time of writing – given its auction calendar.
Ahead of next treasury bills offer, fixed income market analysts anticipate rates will continue to fluctuate following signal from recent OMO actions.
At the midweek auction last week, the CBN cuts spot rate on 91 days Treasury bills paper, kept its offer at the mid tenor unchanged. However rate on one year paper surged by 25 basis points.
Most of the analysts that spoke with MarketForces Africa think rates could taper, which could mirrored a slight price down at the OMO market.
A total of ₦184.75 billion in Treasury bills maturities are expected to keep money market rates around 26.5% given the surplus liquidity in the system.
Market analysts anticipate that the short term benchmark rates may rise if the central bank conducts aggressive liquidity absorption through an OMO auction. #Nigerian Treasury Bills CBN Offers 26.44% Interest Rate on 84-Day OMO Bills
