NIBOR Falls Across All Tenor Buckets on Sustained Liquidity Boost…

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In the just concluded week, CBN auctioned Treasury Bills worth N67.37 billion through the primary market. In line with our expectation, the stop (or marginal) rate for the 182-day and 364-day bills moderated to 11.95% and 12.20% from 12.30% and 12.49% respectively.

However, the stop rate for the 91-day bill closed flat at 10.00%. The outflows were offset by matured bills worth N106.92 billion via Open Market Operations.

Consequently, the net inflows resulted in boost in financial system liquidity and resultant moderation in interbank lending rates: NIBOR for overnight funds, 1 month, 3 months, 6 months and 12 months tenure buckets moderated to 4.78% (from 11.44%), 10.81% (from 10.97%), 11.96% (from 12.58%) and 11.96% (from 13.22%) respectively.

Meanwhile, NITTY fell for most maturities tracked bargain hunting was sustained – yields on 1 month, 3 months and 6 months decreased to 9.61% (from 10.07%), 10.59% (from 11.17%) and 12.11% (from 12.45%) respectively; however, yield on 12 months maturity rose to 13.20% (from 13.19%).

In the new week, treasury bills worth N177.05 billion will mature via OMO; hence, we expect interbank rates to moderate further amid anticipated boost in financial system liquidity.

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