NIBOR Falls for All Tenor Buckets Despite N1.08 trn OMO Sales…

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In the just concluded week, CBN auctioned treasury bills worth N115.12 billion in the Primary Market. Stop rates for the 91-day, 182-day and 364-day auctioned T-bills moderated to 10.90% (from 10.97%), 13.01% (from 13.40%) and 14.37% (from 14.95%) respectively amid significantly higher subscriptions.

The apex bank also sold N1,075.85 billion in the secondary market; the total outflows worth N1,190.97 billion partly offset the inflows from the matured T-bills worth N464.76 billion.

Despite the net outflow, liquidity in the financial system was sustained as NIBOR for all tenure buckets moderated: NIBOR for overnight funds, 1 month, 3 months and 6 months tenure buckets moderated to 18.08% (from 21.5%), 10.48% (from 11.22%), 11.71% (from 12.83%) and 14.12% (from 15.37%) respectively.

Elsewhere, NITTY moderated for all maturities tracked amid sustained buy pressure – yields on 1 month, 3 months, 6 months and 12 months maturities fell to 9.06% (from 9.85%), 11.03% (from 12.05%), 13.60% (from 14.88%) and 14.95% (from 17.18%) respectively.

In the new week, T-bills worth N229.60 billion will mature via the secondary market which is expected to boost liquidty; hence we expect interbank rates to trend downwards.

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