NIBOR Rises for Most Maturities in Favour of Banks with Surplus Liquidity…

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In the just concluded week, CBN sold treasury bills worth N250.51 billion via Open Market
Operation (OMO) which partly offset the total inflows from the matured T-bills worth N277.80
billion.
Despite the net inflows worth N27.59 billion, NIBOR for all maturities tracked rose even
as deposit money banks with surplus liquidity made more money: NIBOR for overnight funds
rose to 4.06% (from 2.95%).

Also, NIBOR for 1 month, 3 months and 6 months tenure buckets increased to 10.68% (from 9.64%), 11.34% (from 10.33%) and 11.70% (from 10.59%) respectively.

Elsewhere, amid sustained demand pressure for T-bills given the extremely low rates at the primary market, NITTY for most maturities tracked closed southwards – true yields on 1 month, 6 months and 12 months maturities moderated to 4.56% (from 4.62%), 5.23% (from 5.23% ) and 5.37% (from 5.78%) respectively; however, NITTY for 3 months rose to 5.00% (from 4.75%).

In the new week, CBN will auction T-bills worth N74.84 billion, viz: 91-day bills worth N10.00 billion, 182-day bills worth N20.00 billion and 364-day bills worth N44.84 billion. The maturing T-bills worth N74.84 billion, in addition to the maturing OMO bills worth N331.05 billion, we expect rates to decrease marginally amid boost in financial system liquidity.

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