NIBOR Rises for Most Tenor Buckets Despite Huge Matured OMO Bills…


In the just concluded week,CBN auctioned only N60 billion despite the huge matured OMO bills worth N438.74 billion.

Nevetheless, we saw NIBOR rise for all tenor buckets. Specifically, NIBOR for Overnight, 1 month, 3 months and 6 months roseto4.17% (from 0.43%), 0.60% (from 0.38%), 0.69% (from 0.48%)and 0.80% (from 0.49%)respectively.

Elsewhere, NITTY moderated for most maturities tracked, especially at the short-end of the curve as traders playe dat these levels to avoid interest rate risk. Yields for 1 month, 3months and 6monthsmaturitiesmoderatedto 0.18% (from 0.33%), 0.23% (from0.35%)and 0.40%(from0.44%)respectively.

However,yields for 12 months maturity rose to 0.80% (from 0.77)%. In the new week, T-bills worth N417.01 billion will mature via the primary and secondary markets to more than offset the T-bills worth N205.76 billion which will be auctioned by CBN via the primary market; viz: 91-day bills worth N12.76 billion, 182-day bills worth N0.00 billion and 364-day bills worth N193.00billion.

We expect the stop rates of the issuances to drop amid demand pressure. We also expect NIBOR to moderate from expected liquidity boost

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