NIBOR Moves in Mixed Directions across Tenor Buckets…

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In the just concluded week, CBN auctioned treasury bills worth N305.08 billion in the Secondary Market. The total outflows partly offset the inflows from the matured T-bills worth N381.54 billion; hence, the net inflow resulted in financial system liquidity ease in line with our expectation.

Hence, NIBOR for overnight funds and 1 month tenure buckets moderated to 12.96% (from 16.96%) and 13.18% (from 14.42%) respectively. On the other hand, NIBOR for 3 months and 6 months tenure buckets rose to 13.49% (from 13.01%) and 14.87% (from 14.86%) respectively.

Meanwhile, NITTY moved in mixed directions across maturities tracked. While yields on 1 month and 12 months maturities fell to 12.06% (from 13.97%) and 17.11% (from 17.18%) respectively, yield on the 3 months and 6 months maturities rose to 12.33% (from 11.81%) and 14.06% (from 13.88%) respectively.

In the new week, T-bills worth N446.68 billion will mature via the primary and secondary markets which will more than offset T-bills worth N254.64 billion to be auctioned by CBN via the primary

market; viz: 91-day bills worth N7.85 billion, 182-day bills worth N69.57 billion and 364-day bills worth N177.22 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 further increase, given the rising inflationary pressure in the near-term.

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