1 Month Treasury Yield Drops to Single Digit in Absence of OMO Sales…

Date:

In the just concluded week, NITTY further moderated for most maturities tracked on sustained buy pressure – yields on, 1 month, 3 months and 12 months maturities fell to 9.85% (from 12.07%), 12.05% (from 12.25%) and 17.18% (from 17.34%) respectively.

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However, yield on the 6 months maturity rose to 14.88% (from 13.65%).

Elsewhere, the liquidity impact of the matured T-bills worth N578.99 billion, the N649.19 billion distributed by the Federation Account Allocation Committee as well as the absence of OMO sales by CBN led to partial ease in financial system liquidity, in line with our expectation.

Hence, NIBOR for 1 month and 3 months tenure buckets moderated to 11.22% (from 12.62%) and 12.83% (from 12.92%) respectively. However, NIBOR for overnight funds and 6 months tenure buckets increased to 21.50% (from 17.46%) and 15.37% (from 14.50%) respectively.

In the new week, T-bills worth N464.76 billion will mature via the primary and secondary markets which will more than offset T-bills worth N115.12 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N24.37 billion, 182-day bills worth N38.75 billion and 364-day bills worth N52.00 billion.

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

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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