NIBOR Rises Despite Renewed Liquidity Ease…

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American dollar and stop watch

In the just concluded week, CBN auctioned treasury bills worth N107.05 billion Via Primary Market. On the back of increased demand from portfolio investors, stop rates moderated for all maturities.

Specifically, stop rates for 91-day, 182-day and 364-day T-bills moderated to 9.74% (from 10.5%), 10.75% (from 11.70%) and 11.14% (from 11.91%) respectively in line with our expectation.

Hence, the total outflows worth N107.05 billion partly offset the inflows from the matured Tbills worth N148.73 billion.

Despite the financial system liquidity ease due to net inflows, NIBOR for overnight funds, 3 month and 6 months tenure buckets increased to 12.45% (from 2.85%), 11.45% (from 11.28%) and 12.46% (from 12.33%) respectively.

However, NIBOR for 1 months tenure buckets moderated to 10.84% (from 10.86%). Elsewhere, NITTY moderated for all maturities tracked amid sustaineded bullish activity – yields on, 1 month, 3 months, 6 months and 12 months maturities fell to 8.99% (from 9.47%), 9.25% (from 10.22%), 10.77% (from 11.24%). and 12.36% (from 12.54%) respectively.

In the new week, T-bills worth N90.07 billion will mature via the secondary markets; however, we expect interbank interest rates to moderate in anticipation of financial system liquidity ease.

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