NIBOR Moderates for All Maturies amid Financial System Liquidity Ease…

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In the just concluded week, CBN refinanced
N265.95 billion T-bills which matured via the primary market at lower rates for most maturities as total subscription was 1.8 times higher.

Hence, stop rates for the 91-day and the 181-day bills fell further to 1.20% (from 1.30%) and 1.50% (from 1.80%) respectively.

However, 365–day bill stop rate rose slightly to 3.40% (from 3.35%).

Given the financial system liquidity boost, as we saw banks deposit N109.30 billion (SDF) with CBN, NIBOR fell for all maturities tracked.

NIBOR for overnight funds, 1 month, 3 months and 6 months tenor buckets moderated to 1.67% (from 2.83%), 4.84% (from 6.05%), 5.03% (from 6.14%) and 5.62% (from 5.88%) respectively.

Meanwhile, NITTY moved in mixed directions across maturities, while yields on 1 month and 3 months maturities remained unchanged at 1.19% and 1.27% respectively, 6 months and 12 months maturities rose to 1.73% (from 1.65%) and 3.00% (from 2.99%) respectively.

In the new week, we expect NITTY to fall further for most maturities as investors move to the secondary market to buy T-bills maturities with relatively higher yields amid declining stop rates…

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