Despite Treasury-bills worth N16.25 billion expected to mature this week, there are anticipations that activity in the money market would be slightly bearish amid the limited maturing T-bills.
Also, the Debt Management Office (DMO) would auction N225 billion worth of local bonds; viz: N75 billion a piece for the 14.55 per cent Federal Government of Nigeria (FGN) April 2029; 12.50 per cent FGN April 2032, and 16.25 per cent FGN April 2037 re-openings.
Hence, dealers expect the stop rates to moderate as DMO might mirror the declining trend in the money market stop rate.
Meanwhile, the Central Bank of Nigeria (CBN) recently said it offered treasury bills amounting to N7.33 trillion in the first half of the year (H1 2022) while total public subscriptions amounted to N10.94 trillion.
The bank also stated that the total outstanding FGN domestic debt stock amounted to N20.91 trillion, representing an increase of N3.28 trillion or 18.59 per cent outstanding as of June 2022, which was higher than the N17.63 trillion recorded in June 2021.
This was contained in the CBN Financial Market Half-Year Activity Report 2022, which was obtained from the Central Bank’s website.
Consequently, the report noted that the cost of debt service increased by 40.74 per cent to N1.37 trillion at half-year compared to N977.03 billion in June last year, due to the increase in borrowings by the Federal Government.
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