NITTY Rises for Most Maturities on Renewed Sell Pressure…

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At the close of the trading week, CBN auctioned treasury bills worth N316.23 billion via the Secondary Market.

The total outflows worth N316.23 billion was offset by the inflows from the matured T-bills worth N375.98 billion.

Hence, NIBOR for 6 months fell to 14.34% (from 14.45%). However, NIBOR rose for most tenor buckets tracked amid renewed financial system liquidity strain: NIBOR for overnight, 1 month and 3 months rose to 4.81% (from 4.42%), 13.07% (from 12.07%) and 13.98% (from 13.49%) respectively.

Meanwhile, NITTY rose for most maturities tracked amid renewed sell pressure: yields on 1 months, 3 months and 12 months maturities increased to 12.25% (from 10.43%), 13.24% (from 12.37%) and 16.50% (from 16.49%) respectively; however, NITTY for 6 months moderated to 13.28% (from 13.34%).

This week, T-bills worth N552.07 billion will mature via the primary and secondary markets which will more than
offset T-bills worth N128.24 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N3.38
billion, 182-day bills worth N16.92 billion and 364-day bills worth N107.94 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 for 364-day amid wider spread in yields between the primary and secondary markets.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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