In the just concluded week, NITTY further moderated for most maturities tracked on sustained buy pressure – yields on, 1 month, 3 months and 12 months maturities fell to 9.85% (from 12.07%), 12.05% (from 12.25%) and 17.18% (from 17.34%) respectively.
However, yield on the 6 months maturity rose to 14.88% (from 13.65%).
Elsewhere, the liquidity impact of the matured T-bills worth N578.99 billion, the N649.19 billion distributed by the Federation Account Allocation Committee as well as the absence of OMO sales by CBN led to partial ease in financial system liquidity, in line with our expectation.
Hence, NIBOR for 1 month and 3 months tenure buckets moderated to 11.22% (from 12.62%) and 12.83% (from 12.92%) respectively. However, NIBOR for overnight funds and 6 months tenure buckets increased to 21.50% (from 17.46%) and 15.37% (from 14.50%) respectively.
In the new week, T-bills worth N464.76 billion will mature via the primary and secondary markets which will more than offset T-bills worth N115.12 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N24.37 billion, 182-day bills worth N38.75 billion and 364-day bills worth N52.00 billion.
Hence, we expect liquidity ease in the finanical system to be sustained with resultant moderation in interbank rates.