Market Liquidity To Hit N626bn As CBN Rolls Over Treasury Bills

Central Bank of Nigeria Headquarters, Abuja

Nigeria’s secondary market has seen an improved system liquidity of N429.1bn in one week from N88bn previously recorded.

But liquidity is set to surge to N626bn following the Central Bank of Nigeria’s planned rollover of N197.6bn treasury bills at the Primary Market Auction on Wednesday.

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The bills to be rolled over by the apex bank cut across three tenors including 91- day, 182- day and 364-day tenors.

The Nigeria Treasury Bills market players had traded with mixed sentiment following pressured liquidity levels of N88bn at the beginning of last week.

Despite the week demand, pocket size demands drove the activities during the week.

Details of the secondary market transaction for last week revealed that despite the mixed sentiment, liquidity increased by N341bn.

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The Treasury Bills average yield across tenors declined by seven basis points week-on-week to settle at 1.5 per cent from 1.6 per cent which it ended in the previous week.

During the week under review, the bills with the most demand were long-dated maturities including the April 29, 2021 and May 13, 2021 bills.

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