In the just concluded week, activity in the money market was muted given the zero
matured and auctioned Treasury and OMO bills.
The financial system liquidity ease appears to have been induced by the rise in lending facility received by deposit money banks from the apex bank to shore up there short term liquidity needs.
Also, the N320 billion worth of Repo
transactions further boosted liquidity.
Hence, NIBOR fell for most tenor buckets: 1 month, 3 months and 6 months fell to 9.47% (from 10.54%), 10.17% (from 11.44%), and 10.83% (from 12.39%) respectively. Overnight rate however rose further to 19.65% (from 15.10%).
Elsewhere, NITTY rose for all maturties tracked amid renewed sell pressure which was partly induced by the surprise rise in FGN bond rate.
Hence, true yield for 1 month, 3 months, 6 months and and 12 months increased to 3.47% (from 2.87%), 4.15% (from 3.69%), 5.08% (from 4.63%) and 8.01% (from 7.79%) respectively
the new week, T-bills worth N216.87 billion will mature via the primary and secondary markets to exceed T- bills worth N111.87 billion which will be auctioned by CBN via the primary market; viz: 91-day bills worth N2.26 billion, 182-day bills worth N3.24 billion and 364-day bills worth N106.37 billion.
Cowry Research expects the stop rates of the 364-day to slightly moderate amid expectation of appreciation of the Naira against the USD.