NITTY Rises for All Maturities Tracked amid Sustained Bearish Activity…

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At the close of the trading week, CBN sold Tbills worth N241.25 billion in the secondary market.

The outflows partly offset the inflows from the matured T-bills worth N684.84 billion. The net outflow, along with the liquidity effect of N788.14 billion distributed by FAAC, contributed to the Standing Deposit Facility worth N314.90 billion which outweighed the Standing Lending Facility (SLF) worth N127.09 billion.

Nevertheless, NIBOR still rose for all the tenor buckets tracked: NIBOR for overnight funds, 1 month, 3 months and 6 months rose to 26.17% (from 16.13%), 14.95% (from 13.94%), 15.32% (from 14.21%) and 15.23% (from 14.81%) respectively.

Meanwhile, NITTY rose for all maturities tracked as investors sell down their investment in anticipation of higher yields: yields on 1 month, 3 months, 6 months and 12 months rose to 14.78% (from 13.51%), 14.80% (from 13.45%), 14.33% (from 14.19%) and 17.33% (from 17.28%) respectively.

In the new week, T-bills worth N551.36 billion will mature both in the primary and secondary markets.

This is expected to boost financial system liquidty and result in a corresponding downward trend in NIBOR.

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