NITTY Falls for Most Maturities Tracked on Sustained Bullish Activity…

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In the just concluded week, CBN auctioned T-bills worth N377.62 billion through the secondary market. The outflows partly offset the inflows from the matured T-bills worth N551.36 billion.

The net inflow chiefly contributed to the financial system liquidity ease; hence, NIBOR for overnight funds and 1 month tenure buckets moderated to 19.00% (from 25.93%) and 15.75% (from 15.86%) respectively; however, NIBOR for 3 months and 6 months tenure buckets rose to 15.18% (from 14.31%) and 14.80% (from 14.53%) respectively.

Meanwhile, NITTY fell for most maturities tracked as investor’s interest in short term instrument was sustained: yields on 1 month, 6 months and 12 months moderated to 14.95% (from 15.27%), 13.46% (from 13.93%) and 17.31% (from 17.42%) respectively; however, yield on 3 months rose to 14.49% (from 13.48%).

In the new week, T-bills worth N583.80 billion will mature via the primary and secondary markets which will more than offset T-bills worth N74.84 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N10.00 billion, 182-day bills worth N20.00 billion and 364-day bills worth N44.84 billion.

Hence, we expect liquidity ease in the finanical system to be sustained with resultant moderation in interbank rates. Also, we expect stop rates to be flattish as CBN plans to refinance part of the maturing T-bills at the Primary market.

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