Money market activities expected to be bearish on limited maturing treasury, OMO bills

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THERE are indications that activities in the money market will be bearish this week amid limited maturing treasury bills and Open Market Operations (OMO) bills.

Dealers are anticipating that investors who won the auctions last week are expected to dispose of them amid anticipation of rising rates in a fortnight.

Similarly, there are expectations that the value of Federal Government of Nigeria (FGN) Bonds, will increase further (and yields to fall) amid increased demand due to the forthcoming FGN Bonds Auction by the Debt Management Office (DMO).

Meanwhile, the Central Bank of Nigeria (CBN)’s Treasury Bills auction for a 364-Day tenor, which sought to raise N258.5 billion from investors, recorded an oversubscription of 22.7per cent, as interest rate rose to seven per cent compared to 6.07per cent recorded in the previous month.

This is according to the summary of the Nigerian Treasury Bills (NTBs) auction conducted on Wednesday, July 27, 2022.

Specifically, the 364-Day tenor TB recorded a total subscription of N317.25 billion as against the N258.53 billion offer by the CBN, which gave the room for a final allotment of N261.33 billion at a stop rate of seven per cent.

It is worth noting that, despite the rise in the interest rate, increased inflationary pressure to 18.6 per cent in June 2022 still means that the treasury bills printed a negative real yield of 11.6 percent.

The uptrend in the NTBs interest rate is following the hawkish move by the CBN, raising the benchmark interest rate to 14 per cent, the second hike in the year.

The move was geared towards curbing the rising rate of inflation in the country as prices of goods and services hit record highs following galloping global inflationary numbers.

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The PDP spokesman recalled how the opposition party had on various occasions alerted that the APC government had ceded sovereignty over a large portion of our country to terrorists, “many of whom were imported into our country by the APC.”

He further stated: “From the video, in a brazen manner, terrorists as non-state actors boldly showed their faces, boasting, admitting and confirming their participation in the Kuje Prison break, some of whom were former prison inmates who were either jailed or awaiting trial for their previous terrorism act against our country.

“Nigerians can equally recall the confession by the Governor of Kaduna State, Mallam Nasir el-Rufai that the APC government knows the plans and whereabouts of the terrorists but failed to act.

According to Ologunagba, about 18,000 Nigerians have been killed by terrorists between 2020 and 2022 “as the criminals continue to be emboldened by the failures and obvious complicity of the APC and to which the PDP had always drawn attention.”

“This is not politics; this is about humanity and leadership, which leadership sadly and unfortunately is missing in our country at this time,” he said.

The PDP added that it is appalled by “the lame response by the apparently helpless, clueless and deflated Buhari Presidency, wherein it told an agonizing nation that President Buhari “has done all and even more than what was expected of him as Commander in Chief by way of morale, material and equipment support to the military…”

“This is a direct admission of incapacity and failure by the Buhari Presidency and the APC. At such a time, in other climes, the President directly leads the charge and takes drastic measures to rescue and protect his citizens.

“In time of adversity, the President transmutes into Consoler-in-Chief to give hope and succour to the citizens. Painfully, Nigeria does not have a President who cares and can stand as Consoler-in-Chief to the citizens.

“It has now become very imperative for Nigerians to take note and realize that the only solution to this unfortunate situation is to hold the APC government accountable. We must come together as a people, irrespective of our political, ethnic and religious affiliations to resist the fascist-leaning tendencies of the APC administration.

Ologunagba called for an urgent meeting of the National Council of State to advise on the way to go over the nation’s worsening insecurity.

“Our nation must not fall. The resilient Nigerian spirit and ‘can-do- attitude’ must be rekindled by all to prevail on the President to immediately and without further delay, accede to the demand by the PDP and other well-meaning Nigerians to convene a special session of the National Council of State to find a lasting solution since the President has, in his own admission, come to his wit’s end,” the PDP spokesman declared.

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Latest terrorist video: Presidency has admitted Buhari’s failure ― PDP

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Latest terrorist video: Presidency has admitted Buhari’s failure ― PDP

Latest terrorist video: Presidency has admitted Buhari’s failure ― PDP