Saturday, December 4, 2021

    NITTY Briefly Touches Negative Zone Mid-Week…

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    Naija247news Editorial Team
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    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.

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