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

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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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