NIBOR, NITTY Fall on Renewed Financial System Liquidity Ease…

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In the just concluded week, the CBN auctioned Treasury Bills via Primary Market worth N58.49 billion. In line with our expectation, stop rates for the 90-day, 182-day and 364-day bills moderated to 10.15% (from 10.29%), 12.50% (from 12.60%) and 12.75% (from 12.85%) respectively amid investors’ high demand for fixed income securities.

Hence, the total outflows worth N58.49 billion partly offset the matured bills worth N165.91 billion. Amid renewed financial system liquidity, NIBOR fell for most tenure buckets; specifically, NIBOR for overnight funds rate, 1 month and 3 months tenure buckets moderated to 10.7% (from 19.4%), 11.81% (from 11.95%) and 11.97% (from 12.42%) respectively. However, NIBOR for 6 months increased to 14.59% (from 14.45%).

Elsewhere, NITTY moderated for all maturities tracked amid renewed buy pressure – yields on 1 month, 3 months, 6 months and 12 months maturities fell to 10.75% (from 10.84%), 10.69% (from 11.46%), 13.56% (from 13.74%) and 14.29% (from 14.71%) respectively.

In the new week, T-bills worth N46.25 billion will mature via the secondary market. However, with the Debt Management Office (DMO) expected to issue N100 billion worth of debts, we expect NIBOR to trend upwards.

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