Printer Friendly

Rates to moderate on FAAC, T-Bills inflows.

There are indications that inflows from Federation Account Allocation Committee (FAAC) and Treasury Bills maturities will help moderate interbank rates as liquidity receives a boost in the financial system this week.

In a note to clients, dealers from Cowry Assets Management Limited said, 'The outflows will be exceeded by inflows in matured bills worth N415.95 billion and expected impact of FAAC inflows worth N698.71 billion; hence, we expect moderation in interbank rates.'

Similarly, as the Central Bank of Nigeria (CBN)5 auctions treasury bills worth N145.29 billion, viz: 91-day bills worth N9.54 billion, 182-day bills worth N47.71 billion and 364-day bills worth N88.04 billion on November 02. 2018, some dealers expect higher stop rates given inflationary pressure.

Meanwhile, the Nigerian Government in its October bond auctions raised N88.08 billion (about $288.786 million) to finance the 2018 budget, the Debt Management Office (DMO) has said.

The DMO said on its website that the bonds were auctioned on Wednesday in three tenors of five, seven and 10 years.

It explained that N115 billion worth of shares was initially offered to be bought but only N88.08 billion was allotted, though subscribers made bids worth N143.48 billion.

According to the auction results, investors showed a strong preference for the 10-year re-opening bond with a total subscription of N102.08 billion compared to the N45 billion that was offered.

However, N55.29 billion was allotted. It added that the Federal Government bonds at the auction were allotted at 12.75 per cent for the five year, 13.53 percent for the seven year and 13.98 per cent for the 10-year bond.

COPYRIGHT 2018 Asianet-Pakistan
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2018 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Nigerian Tribune (Oyo State, Nigeria)
Date:Oct 29, 2018
Previous Article:Buhari on leaving Nigeria.
Next Article:AFDB to boost entrepreneurship, job creation in Nigeria.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters