NITTY Moderates for all Maturities amid Demand Pressure…

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In the just concluded week, CBN issued a total of N180 billion at the OMO auction to partly offset matured OMO bills worth N207.84 billion.

Despite the net inflows worth N27.84 billion, NIBOR rose for most tenor buckets tracked amid liquidity strain.

Specifically, NIBOR for overnight funds, 3 months and 6 months placements increased to 14.32% (from 4.92%), 3.04% (from 2.40%) and 4.22% (from 4.03%) respectively.

However, the 1 month NIBOR fell to 1.68% (from 2.05%).

Elsewhere, NITTY moderated for all maturities tracked amid demand pressure. Yield for 1 month, 3 months, 6 months and 12 months maturities tightened to 0.65% (from 0.95%), 0.94% (from 1.10%), 1.64% (from 1.94%) and 2.20% (from 2.56%) respectively

In the new week, treasury bills worth N133.45 billion will mature via the primary and secondary markets to more than offset T-bills worth N128.73 which will be auctioned by CBN via the primary market; viz; 91-day bills worth N20.37 billion, 182-day bills worth 56.37 billion and 364-day bills worth N51.99 billion.

We expect the stop rates of the new issuances to moderate.

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