Chimara BygoldThere are expectations that a marginal boost in financial system liquidity will ease the interbank offered rate this week. This is just as dealers say Treasury-bills worth N65.03 billion will mature through the primary and secondary markets to exceed T-bills worth N15.03 billion, which will mature via the primary market.
The maturities are 91-day bills worth N4.94 billion and 182-day bills worth N10.09 billion. System liquidity was elevated for most of the week, supported by multiple inflows, however, money market rates traded in double digits.
According to dealers, at the close of the trading on Friday, open repo (OPR) and overnight rates (O/N) settled at 15.50per cent and 15.75 per cent respectively indicating a week on week (W-o-W) increase of +3.33per cent and +0.51per cent.
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Analysts from Cowry Research said they do not expect CBN to refinance the maturing bills in the primary market in line with its usual tradition of the limited auction in the month of December.
“Hence, we expect a marginal boost in the financial liquidity system to ease interbank offered rate in the new week. “In the new week, we expect the value of FGN Eurobonds to rise (and yields to decrease) as rates in this space appear very attractive at close to 9 per cent,” they stated in a note to clients.
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