NIBOR Rises for Most Maturities amid OMO Mup Up…


In the just concluded week, Treasury bills worth N583.80 billion matured via the primary and secondary markets which were more than offset by auctioned T-bills worth N654.30 billion via the primary and secondary markets.

Stop rates for the primary market sales totalling N74.84 billion closed virtually flat in line with our expectation – the 91-day, 182-day and 364-day stop rates were 10.899%, 13.1% and 14.45% compared to 10.90%, 13.1% and 14.50% respectively.

The net outflow resulted in financial system liquidity strain; consequently, NIBOR for overnight funds, 1 months and 6 months tenure buckets increased to 22.03% (from 19%), 16.02% (from 15.75%) and 14.85% (from 14.80%) respectively on the back of significant OMO mup up on Friday.

Meanwhile, NITTY moved in mixed directions across the maturities tracked; while yields on 1 month and 12 months rose to 15.70% (from 14.95%) and 17.34% (from 17.31%) respectively, yields on the 3 months and 6 months maturities fell to 12.58% (from 14.49%) and 13.35% (from 13.46%) respectively.

In the new week, T-bills worth N375.35 billion will mature via the secondary market, resulting in liquidity ease. Hence, in the absence of major OMO outflows, we expect moderation in interbank lending rates.


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