In the just concluded week, we witnessed a
downward repricing of yields at all maturities tracked ahead of next week auction as traders expect rates to moderate given the strong appreciation of the Naira agianst the USD.
Also, with the declining inflation rate, traders believe CBN has more leg room to moderate rate further.
Hence, NITTY for 1 month, 2 months, 6 months and 12 months moderated to 2.59% (from 3.43%), 3.52% (from 4.29%), 4.72% (from 5.33%) and 8.43% (from 8.71%)
Meanwhile, given the small value of matured OMO bills worth N19.26 billion, NIBOR rose for all maturities tracked amid financial liquidity squeeze.
Specifically, NIBOR for Overnight funding, 1 month, 3 months and 6 months rose to 18.00% (from 8.67%), 15.65% (from 11.92%), 16.93% (from 13.50%), and 18.05% (from 14.55%) respectively.
the new week, T-bills worth N131.48 billion will mature via the primary and secondary markets to exceed T- bills worth N51.48 billion which will be auctioned by CBN via the primary market; viz: 91-day bills worth N8.43 billion, 182-day bills worth N16.05 billion and 364-day bills worth N27.00 billion.
Cowry Research expects the stop rates of the new issuances to moderate amid sustained demand by investors.