Treasury bills rates to rise further as CBN sells N179bn vanguardngr.com vanguardnews
THE upward trend of interest rates on treasury bills is expected to persist this week as the Central Bank of Nigeria, CBN, seeks to refinance N179 billion worth of maturing bills.
They said: “In the new week, CBN will refinance T-bills worth N179.75 billion, viz: 91-day bills worth N3.00 billion, 182-day bills worth N8.39 billion and 364-day bills worth N168.36 billion. We expect their stop rates to rise amid increased investors’ demand for higher returns on investment.”analysis showed that stop rates on TBs have been on the upward trend since August with average increase of 178 basis points .
Furthermore, stop rate on the 364 Days bills which dropped by 382 bpts to 11.18 percent in July from 15 percent in December, had risen to 13.5 percent last week. Further analysis showed that foreign investments in money market instruments , which accounts for over 80 percent of total FPIs fell by 41 percent, q-o-q, to $3.5 billion in Q2’19 from $5.9 billion in Q1’19.Meanwhile, the CBN is expected to sustain its liquidity mop up operations in response to inflow of N356.5 billion from maturing secondary market bills.
Analysts project that this level of cost of funds will persist this week due to continued liquidity mop by the apex bank.
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