In the just concluded week, we witnessed an upward repricing of yields at the shorter end of the curve amid investors’ sell-off given the short-term liquidity constraint.
NITTY for 1 month, 2 months and 6 months expanded to 3.35% (from 2.92%), 4.15% (from 3.98%) and 5.58% (from 5.33%) respectively.
On the other hand, NITTY for 12 months moderated to 8.72% (from 8.90%) as traders demanded for this maturity.
Elsewhere, given the matured OMO bills worth N30.00 billion, NIBOR fell for most tenor buckets amid financial system liquidity ease.
Specifically, NIBOR for 1 month, 3 months and 6 months moderated to 10.82% (from 11.98%), 11.89% (from 12.94%), and 13.30% (from 14.32%) respectively.
However, overnight funds rate increased to 12% (from 5.47%).
new week, T-bills worth N233.02 billion will mature via the primary and secondary markets to more than offset the T-bills worth N216.18 billion which will be auctioned by CBN via the primary market; viz: 91-day bills worth N7.19 billion, 182-day bills worth N47.47 billion and 364-day bills worth N161.52 billion.
We expect the stop rates of the new issuances to moderate amid expected boost in financial system liquidity.