NIBOR Moderates for Most Maturities on Matured T-Bills…

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In the just concluded week, Treasury bills worth N375.35 billion matured via the secondary market which were partly offset by auctioned T-bills worth N308.24 billion through Open Market Operations (OMO).

The net inflow resulted in financial system liquidity ease in line with our expectation. Hence, NIBOR for overnight funds, 1 months and 3 months tenure buckets moderated to 21.88% (from 22.04%), 15.55% (from 16.02%) and 13.81% (from 13.89%) respectively; however, NIBOR for 6 months tenure bucket increased to 15.52% (from 14.85%). Meanwhile, NITTY fell for most maturities tracked amid renewed bullish activity.

While yields on 1 month, 3 months and 12 months rose to 14.91% (from 15.71%), 11.30% (from 12.58%) and 17.32% (from 17.34%) respectively, yield on the 6 months maturity rose to 14.63% (from 13.35%).

In the new week, T-bills worth N786.37 billion will mature via the primary and secondary markets which will more than offset T-bills worth N225.45 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N5.85 billion, 182-day bills worth N26.60 billion and 364-day bills worth N193.00 billion.

Hence, we expect liquidity ease in the finanical system to be sustained with resultant moderation in interbank rates. We also expect stop rates to increase, especially at the short end as investors continue to tread cautiously ahead of February 16, Presidential election.

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