NIBOR Moderates for All Maturities Tracked as FAAC Shares N676.61 billion…

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In the just concluded week, CBN repayed
matured T-bills worth N180.36 billion while N72.50 billion was auctioned via OMO, resulting in total net inflows of N107.86 billion.

Also, the Federation Account Allocation Committee (FAAC) shared N676.41 billion among the FG, States and LGAs for the month July.

Hence, given the financial system liquidity boost, NIBOR moderated for all the tenor buckets. NIBOR for overnight funds, 1 month, 3 months and 6 months crashed to 5.08% (from 19.33%), 3.55% (from 4.91%), 3.91% (from 4.29%) and 4.13% (from 4.44%) respectively.

Meanwhile, NITTY rose for most maturities tracked amid renewed bearish activity: yields on 1 month, 3 months and 6 months maturities increased to 1.04% (from 1.02%), 1.32% (from 1.19%) and 1.47% (from 1.45%) respectively. However, yield on 12 months maturity moderated to 2.92% (from 3.01%).

In the new week, T-bills worth N480.09 billion will mature via the primary market which will outweigh T-bills worth N197.59 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N20.37 billion, 182- day bills worth N31.75 billion and 364-day bills worth N145.47 billion.

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

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