NIBOR Moderates for Most Tenor Buckets amid Net Inflows Worth N40.61 billion…

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In the just concluded week, CBN refinanced
only N71.66 billion of the N112.27 billion
treasury bills which matured via the Open
Market Operation (OMO).

Hence, the net
inflow worth N40.61 billion resulted in a boost in financial system liquidity – given the absence of sales of Primary market instruments.

Hence, NIBOR for 1 month, 3 months and 6 months moderated to 1.26% (from 1.58%), 1.19% (from 1.57%) and 1.75% (from 1.95%)
respectively.

However, overnight rate spiked to 13.50% (from 9.33%). Elsewhere, NITTY rose for all maturities tracked amid bearish activity.

Yields for 1 month, 3 months, 6 months and 12 months maturities rose to 0.46%(from 0.41%), 0.46%(from 0.43%), 0.99%(from 0.93%) and 1.72%(from 1.27%) respectively.

In the new week, we expect Naira/USD to stabilize at the I&E FX Window as the price of Nigeria’s crude oil grade Bonny light is expected to remain relatively high amid reports that OPEC+ maintained its production cut.

In the new week, T-bills worth N363.87 billion will mature via the primary and secondary markets which will more than offset the T-bills worth N150.00 billion to be auctioned by CBN via the primary market; viz: 182-day bills worth N10.00 billion and 364-day bills worth N140.00 billion.

We expect the stop rates of the issuances to increase marginally as investors demand for better rates.

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