NIBOR Falls for Most Maturities amid Boost in Financial System Liquidity…


In the just concluded week, treasury bills worth N567.68 billion which matured via the Open Market Operation (OMO) resulted in a boost in financial system liquidity – in the absence of sales of money market instruments.

Hence, NIBOR for most maturities dropped: NIBOR for 1 month, 3 months and 6 months moderated to 1.90% (from 2.32%), 2.13% (from 2.45%) and 2.39% (from 2.89%) respectively.

However, NIBOR for Overnight funds rose sharply to 11.50% (from 2.63%).

Elsewhere, NITTY moved northward for most maturities tracked, especially yields for 3 months and 6 months maturities which increased to 1.03% (from 0.93%) and 1.34% (from 1.27%) respectively.

However, yield on 1 month maturity was flat at 0.83% while for 12 months maturity fell to 2.05% (from 2.10%).

In the new week, T-bills worth N494.87 billion will mature via the primary and the secondary markets which will outweigh T-bills worth N104.87 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N8.84 billion, 182-day bills worth N3.50 billion and 364-day bills worth N92.53 billion.

Hence, we expect the stop rates of the issuances to decline amid demand pressure even as N370 billion worth of OMO bills mature.

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