Nigerian financial market dealers are optimistic that the planned issuance of Treasury Bills, T-Bills, worth N196.99 billion by the government on Thursday, June 16, will boost financial system liquidity and soften interbank rates.
According to one of the dealers, the instruments are 91-day bills worth N35.10 billion and 149-day bills worth N161.89 billion.
“We expect the inflows to boost financial system liquidity and thereby soften interbank rates,” said dealers from Cowry Assets Management Limited.
The Debt Management Office is billed to auction N105.0 billion worth of bonds at the monthly bonds primary market auction.
The amount on offer according to the debt office is N15 billion of FEB 2020, N40 billion of JAN 2026 and N50billion of MAR 2036 bonds.
“We expect these bonds to clear at stop rates of 13.7 per cent, 13.9 per cent and 14.0 per cent respectively. We believe the bonds market performance in the week ahead will be majorly driven by the auction as investors free up liquidity ahead of the auction even as unsuccessful bids are redirected into the secondary market,” the dealers said.
