NIBOR Moves in Mixed Directions across Maturities Tracked…


In the just concluded week, CBN sold treasury bills worth N640.20 billion in the Secondary Market. The total outflows worth N640.20 billion offset the inflows from the matured T-bills worth N315.55 billion. The net outflow resulted in financial system liquidity squeeze.

Hence, NIBOR for overnight funds and 3 months tenure buckets increased to 18.67% (from 11.12%) and 13.28% (from 12.99%) respectively. However, NIBOR for 1 month and 6 months tenure buckets moderated to 12.01% (from 12.14%) and 14.78% (from 15.04%).

Meanwhile, NITTY rose for most maturities tracked amid renewed sell pressure – yields on 1 month, 3 months and 12 months maturities rose to 10.94% (from 10.41%), 12.29% (from 11.84%) and 17.48% (from 17.40%) respectively.

However, yield on the 6 months maturities moderated to 13.69% (from 14.27%). In the new week, T-bills worth N783.33 billion will mature via the primary and secondary markets which will more than offset T-bills worth N153.38 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N3.38 billion, 182-day bills worth N10.00 billion and 364-day bills worth N140.00 billion.

Hence, we expect liquidity ease in the finanical system to be sustained with resultant moderation in interbank rates.

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