In the just concluded week, NITTY continued its southward trek – and briefly fell in the negative zone for most maturities – amid sustained demand for short term treasury bills.
Yields for 1 month, 3 months, 6 months and 12 months maturities fell to 0.01% (from 0.21%), 0.06% (from 0.49%), 0.14% (from 0.38%) and 0.15% (from 0.24%) respectively.
Meanwhile, treasury bills worth N269.43 billion which matured via the
Open Market Operation (OMO), as against the N70 billion worth of auctioned OMO bills, resulted in a financial system liquidity ease – in the absence of auction of T-bills at the primary market.
Hence, we saw a boost in the financial system liquidity and a resultant drop in NIBOR for most tenor buckets.
NIBOR for 1 month, 3 months and 6 months plummeted to 0.33% (from 0.50%), 0.79% (from 0.93%) and 0.56% (from 1.71%) respectively.
However, NIBOR for overnight funds rose to 2.50% (from 1.00%). NGN 500.00 NGN 470.00 NGN 440.00 NGN 410.00 NGN 380.00 NGN 350.00
In the new week, T-bills worth N273.65 billion will mature via the primary which will be than offset T-bills worth N150.59 billion to be auctioned via the primary market; viz: 91-day bills worth N20.37 billion, 182-day bills worth N19.15 billion and 364-day bills worth N111.07 billion.
Hence, we expect the stop rates of the issuances to further decline furthe amid sustained demand.