NIBOR, NITTY Moderate Across Tenor Buckets on Renewed Liquidity Ease…

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In the just concluded week, CBN auctioned Tbills worth N129.64 billion in the Primary Market. Amid moderate demand from portfolio investors, stop rates were flattish for most tenor buckets: investors in 91-day and 182-day and maturities got 10.00% and 11.95 respectively.

However, the 364-day tenor rose to 12.34% (from 12.20%), in line with our expectation, as it was oversubscribed by more than two times. However, the outflows from the auctioned Tbills were surpassed by The total inflows worth N255.40 billion. Hence, the net inflows resulted in financial system liquidity ease and decline in interbank lending rates.

Specifically, NIBOR for overnight funds, 1 month, 3 months and 6 months tenure buckets fell to 5.54% (from 11.65%), 12.22% (from 12.80%), 12.88% (from 13.80%) and 13.70% (from 14.46%) respectively.

Meanwhile, NITTY moderated for all maturities tracked amid buy pressure from portfolio investors – yields on 1 month, 3 months, 6 months and 12 months maturities fell to 10.94% (from 11.37%), 11.02% (from 12.78%), 12.28% (from 12.97%) and 13.80% (from 14.01%) respectively

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