Investors in the Nigerian treasury bills market are anticipating the government’s instrument worth N369.4 billion to mature this week.
The aforementioned amount would be sufficient to offset the anticipated treasury bills to be auctioned this week by the Central Bank of Nigeria, CBN.
The apex bank is expected to sell treasury bills valued at N259.97 billion to traders at the primary market. T-bills are maturing at both the primary and secondary markets,it was learnt.
A breakdown of the expected exercise showed that the central bank will sell 91-day bills worth N7.89 billion, 1B2-day bill worth N30 billion and N364-day bill worth N222.08 billion.
Last week, the CBN sold treasury bills worth N67.7 billion via the secondary market.
According to analysts at Cowry Asset, the outflows were partly offset by inflows worth N56.30 billion in matured treasury bills, resulting in liquidity strain.
Thus, NIBOR for 1 month, 3 months and 6 months tenor buckets climbed week-on-week to 15.56 percent from 15.11 percent, 16.55 percent from 15.58 percent and 18.30 percent from 17.69 percent respectively.
However NIBOR for overnight tenor bucket dropped week-on-week to 13.30 percent from 22.63 percent.
Elsewhere, NITIY slumped for most maturities tracked amid buy pressure: yields on the 1 month, 6 months and 12 months maturities moderated to 13.81 percent from 14.83 percent, 15.37 percent from 15.60 percent and 15.35 percent from 15.61 percent respectively.
However, yield on 3 months maturity jumped to 14.49 percent from 13.52 percent.