Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In Proshare - RSS Feed

Rates to Remain at Current Levels Ahead of PMA

Proshare

Monday, February 12, 2018  03:46 PM   /  Afrinvest

The Treasury Bills (“T-Bills”) market performance was largely bearish last week as average yields across tenors inched up 74 bps from 14.7%, to 15.4% amidst tight liquidity for major part of the week.


Notwithstanding, the CBN upheld its mop up of system liquidity with its OMO auctions which held on 4 of the 5 trading days.


Please see below indicative rates for today:

Maturity

Tenor

Offer Rate (%)p.a.

12-Apr-18

59

11.60

14-Jun-18

122

12.70

05-Jul-18

143

12.50

30-Aug-18

199

13.00

04-Oct-18

234

13.00

OMO Auction

90 -180

12.00

OMO Auction

180 - 300

13.50

Kindly note the above rates are valid till 1:30pm today (12-Feb-2018)


This week, we expect rates to remain around current levels on the back of improved liquidity levels in the system towards the end of last week and the frequency of OMO auctions is expected to ease as the Apex Bank conducts the 4
th Primary Market Auction (“PMA”) for the year with a total of N176.0bn on offer.

We also anticipate PMA stop rates to hover around the last stop rates with sustained interest in the 364-day instrument on the back of attractive true yield of approximately 15.8%.


Please see below amount on offer and previous stop rates in the table below:

Tenor

91 Days

182 Days

364 Days

Amount on Offer

N6bn

N30bn

N140bn

Previous Stop Rate (%) p.a.

12.00

13.65

13.70

 
Related News

3.     Bearish Flattening on Bonds, despite continued offshore sell on the 10-yr
4.     CBN releases No-Sale OMO Result, as Finance Minister Announces Prospective $2.5bn Eurobond Issuance
5.     FGN Savings Bond February 2018 Offer
6.     Funding Pressures Push Lending Rates above 30%, amid Continued Sell off on Bonds
7.     Bond Yields Rise on Weak Local Demand and Slight Offshore Sell
8.     DMO issues 2 and 3 year Savings Bonds at 10.277% and 11.277% respectively
9.     Nigeria’s Re-Inclusion to the JP Morgan Index, How Feasible?
10. CBN sells N215bn OMO T-bills to Mop up Excess Liquidity Inflows
11. CBN sells N253bn T-bills at c.10bps lower than previous Auction Rate
12. FGN Domestic Debt Service Payment Increased In Line With The Stock of Domestic Debt
13. Naira Depreciates slightly despite $210m FX intervention by the CBN




READ MORE:
Related News