…In the just concluded week,activity in the money market was relatively silent as there were no auctions in the Primary and Secondary markets despite the matured OMO bills worth N250.50 billion.
Hence,the financial system was awash with liquidity, leaving NIBOR to moderate for all maturities tracked. Specifically, NIBOR for Overnight, 1 month, 3 months and 6 months fell to0.50% (from 0.81%), 0.47% (from 0.73%), 0.51% (from 0.82%)and 0.49% (from 0.95%) respectively.
Elsewhere, NITTY moved in mixed directions across maturities tracked.As investors sold more on the shorter end of the yield curve, yields for 1 monthand3monthsmaturitiesroseto 0.29% (from 0.25%)and 0.35%(from0.26%)respectively.
However, yields for 6monthsand 12 months maturities fell to 0.37%(from0.40%)and 0.75%(from0.76%) respectively as traders bought more at the longer end of the curve.
In the new week, T-bills worth N556.12billion will mature via the primary and secondary markets which will more than offset the T-bills worth N74.84billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N10.00billion, 182-day bills worth N20.00billion and 364-day bills worth N44.84billion.
We expect the stop rates of the issuance to drop, especially for 364-day bill, amid demand pressure.