In the just concluded week, NITTY further moderated for all maturities tracked on sustained buy pressure – yields on 1 month, 3 months, 6 months and 12 months maturities moderated to 9.47% (from 10.13%), 10.22% (from 10.61%), 11.24% (from 12.30%) and 12.54% (from 13.14%) respectively.
Elsewhere, given the matured bills worth N105.21 billion via Open Market Operations, and in the absence of auctioned bills by CBN, we saw the financial system awash with liquidity.
Consequently, NIBOR fell for all tenure buckets in line with our expectation, viz: overnight funds, NIBOR for 1 month, 3 months and 6 months tenure buckets shrank to 2.85% (from 6.69%), 10.86% (from 11.64%), 11.28% (from 12.58%) and 12.33% (from 13.71%) respectively.
In the new week, CBN will auction T-bills worth N107.05 billion, viz: 91-day bills worth N5.85 billion, 182-day bills worth N26.60 billion and 364-day bills worth N74.60 billion.
We expect their stop rates to decrease marginally due to increase demand amid boost in system liquidity which, in addition to maturing T-Bills worth N41.68 billion, is also expected to result in decline in NIBOR.