NIBOR Rises for Most Maturities amid OMO Mup Up…

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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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