NIBOR, NITTY Moderate amid Renewed Liquidity Ease…

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In the just concluded week, CBN auctioned T-bills worth N88.86 billion Via Primary Market. On the back drop of increased demand from portfolio investors, stop rates moderated for most maturities.

Specifically, stop rates for 182-day and 364-day fell to 11.70% (from 11.89%) and 11.91% (from 12.02%) respectively.

However, stop rate for 91-day maturity rose to 10.50% (from 9.60%) in line with our expectation.

With addition auctions worth N664.14 billion via OMO, the total outflows worth N753 billion partly offset the total inflows from maturing t-bills and FAAC allocations worth N868.33 billion. Despite the financial system liquidity ease NIBOR rose for most maturities, NIBOR for overnight funds, 1 months and 6 months tenure buckets increased to 6.69% (from 5.00%), 11.64% (from 11.62%) and 13.71% (from 13.54%) respectively.

However, NIBOR for 1 month tenure bucket moderated to 12.58% (from 12.63%). Elsewhere, NITTY fell for all maturities tracked amid sustained demand pressure – yields on 1 month, 3 months, 6 months and 12 months maturities contracted to 10.13% (from 10.42%), 10.61% (from 11.63%), 12.30% (from 12.52%) and 13.19% (from 13.33%) respectively.

In the new week, T-bills worth N105.24 billion will mature via the secondary markets; however, we expect interbank interest rates to moderate in anticipation of financial system liquidity ease.

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