NIBOR, NITTY Fall for Most Tenor Buckets on Liquidity Ease…

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In the just concluded week, CBN sold OMO bills worth N112.65 billion to partly mop up OMO repayments worth N226.78 billion.

Hence, NIBOR moderated for most tenor buckets amid financial system liquidity ease, viz: NIBOR for 1 month, 3 months and 6 months tenor buckets plunged to 7.92% (from 11.14%), 8.43% (from 11.89%) and 9.17% (from 12.39%) respectively.

However, NIBOR for overnight funds rose sharply to 33.06% (from 3.02%).

Meanwhile, NITTY fell for most maturities tracked amid sustained liquidity ease: yields on 1 month, 6 months and 12 months maturities fell to 1.72% (from 2.01%), 2.54% (from 2.63%) and 3.47% (from 3.81%) respectively.

However, yield on 3 months maturity rose to 1.97% (from 1.96%). 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Movement in Interbank Interest Rates 20-Apr-20
NIBOR Overnight 22-Apr-20 23-Apr-20
3 MTHS NIBOR 21-Apr-20 24-Apr-20

In the new week, T-bills worth N162.19 billion will mature via the primary and secondary markets which will more than offset T-bills worth N131.53 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N49.84 billion, 182-day bills worth N10.62 billion and 364-day bills worth N71.07 billion.

Hence, we expect the stop rates to decline amid demand pressure.

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