NIBOR Moves in Mixed Directions across Maturities Tracked…

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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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