Saturday, December 4, 2021

    NITTY Falls for All Maturities as 364-day T-Bill Rate Moderates by 25bps…

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    Naija247news Editorial Team
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    In the just concluded week, CBN sold T-bills worth N187.23 billion to mop up matured bills worth N121.66 billion. In line with our expectations, the 364-day bill was issued at lower rate despite the larger amount of bills sold.

    Hence, stop rate for 364-day bill
    moderated by 25bps to 7.25% from (7.50%).

    However, stop rates for 91-Day and 182-Day
    bills were unchanged at 2.5% and 3.5%

    Given the moderation in 364-day bill rate, NITTY fell for all maturities tracked.

    Specifically, NITTY for 1 month, 3 months, 6 months and 12 months moderated to 3.09% (from 3.26%), 3.79% (from 4.22%), 4.84% (from 5.08%) and 7.62% (from 7.70%) respectively.

    Elsewhere, NIBOR rose for most tenor buckets amid renewed financial liquidity strain amid the N50 billion worth of OMO sold to partly mop up N110 billion which matured: overnight rate, 1 month, 3 months and 6 months NIBOR rose to 17.17% (from 14.73%), 10.44% (from 9.03%), 11.31% (from 10.51%) and 12.32% (from 11.89%) respectively.

    In the new week, we expect activity in the money market to be relatively calm as the market expects just N85 billion worth of OMO matures.

    Meanwhile, we feel that the N150 billion worth of bond sales by Debt Management Office (DMO) should further provide clarity to the direction of yields.

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