NIBOR Falls for All Tenor Buckets Despite N1.08 trn OMO Sales…


In the just concluded week, CBN auctioned treasury bills worth N115.12 billion in the Primary Market. Stop rates for the 91-day, 182-day and 364-day auctioned T-bills moderated to 10.90% (from 10.97%), 13.01% (from 13.40%) and 14.37% (from 14.95%) respectively amid significantly higher subscriptions.

The apex bank also sold N1,075.85 billion in the secondary market; the total outflows worth N1,190.97 billion partly offset the inflows from the matured T-bills worth N464.76 billion.

Despite the net outflow, liquidity in the financial system was sustained as NIBOR for all tenure buckets moderated: NIBOR for overnight funds, 1 month, 3 months and 6 months tenure buckets moderated to 18.08% (from 21.5%), 10.48% (from 11.22%), 11.71% (from 12.83%) and 14.12% (from 15.37%) respectively.

Elsewhere, NITTY moderated for all maturities tracked amid sustained buy pressure – yields on 1 month, 3 months, 6 months and 12 months maturities fell to 9.06% (from 9.85%), 11.03% (from 12.05%), 13.60% (from 14.88%) and 14.95% (from 17.18%) respectively.

In the new week, T-bills worth N229.60 billion will mature via the secondary market which is expected to boost liquidty; hence we expect interbank rates to trend downwards.

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