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


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
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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