The Central Bank of Nigeria (CBN) is poised to auction N34bn worth of Treasury bills, 14, roll over existing Federal Government T-bill maturities today, the 14th of August 2019.
Following the recent bearish trend in the market, analysts at Zedcrest Capital Limited said upon resumption from the Salah break, despite the small volume of T-bills on offer, they expected stop rates to clear above their previous level.
The Federal Government of Nigeria (FGN) bonds closed on a relatively quiet note having witnessed significant sell-offs earlier in the week, ones which lifted yields higher by 50 basis points week-on-week.
Yields however dropped by a marginal figure – 3 basis points. This is following renewed demand on the long end of the curve, with the most interest witnessed on the FGN 2034 bond.
The analysts at Zedcrest Capital Limited said: “This week, we expect continued demand from local investors to place a slight downward pressure on yields, following expectation for a continued downtrend in the July inflation figure and coupon payment of N47bn to be paid on the FGN 2020 bond.”
That said, the analysts pointed out that their prediction was barring a continued escalation in the global externalities witnessed earlier last week.
The T-bills market still remain bearish as offshore sell-offs persisted across most of the short- and mid-tenured bills.