Sunday, January 23, 2022

    Rate for 364-day Bill Moderates on Demand Pressure…

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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 N215.17 billion which moped up
    matured bills worth N118.73 billion. In line with our expectations, the 364-day bill was issued at lower rate amid demand pressure.

    Hence, stop rate for 364-day bill moderated to 5.89% from (6.50%). However, stop rates for 91-Day and 182-Day bills were unchanged at 2.5% and 3.5% respectively.

    Activities in the secondary
    market was largely bullish as traders moved in the direction of the 364-day bill rate.

    Hence, NITTY for 3 months, 6 months and 12 months fell to 3.50% (from 3.61%), 4.53% (from 4.63%) and 6.04% (from 6.66%) respectively. However, NITTY for 1 month rose slightly to 3.10% (from 3.02%).

    Meanwhile, given the net repayment of N30.20 billion OMO bills we saw liquidity boost in the interbank space, hence NIBOR plunged for all of the tenor tracked.

    Notably, overnight, 1 month, 3 months and 6 months NIBOR moderated to 9.40% (from 18.50%), 9.36% (from 9.66%), 9.62% (from 10.67%) and 10.39% (from 11.30%) respectively

    In the new week, we expect activity in the money market to be slightly bullish as the market expects liquidity boost from the maturing N54.30 billion worth of OMO bills.

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