NIBOR Moves in Mixed Directions across Maturities Tracked…

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In the just concluded week, CBN repayed matured T-bills worth N321.48 billion while N100 billion was auctioned via OMO, resulting in total net inflows of N221.48 billion.

Also, banks generally deposited with CBN in the course of week as Standing Deposit Facility (SDF) stood at
N171.93 billion against zero Standing Lending Facility (SLF). Hence, given the financial system liquidity boost, NIBOR for Overnight funds and 1 month dropped to 2.94% (from 12.58%) and 2.64% (from 2.79%) respectively.

However, NIBOR rose for 3 months and 6 months to 3.02% (from 2.94%) and 3.25% (from 3.12%) respectively.

Meanwhile, NITTY performance was mixed as investors bought shorter-date maturities. While yields on 1 month and 3 months
maturities fell to 1.15% (from 1.16%) and 1.15% (from 1.19%) respectively, yields on 6 months and 12 months
maturities rose to 2.25% (from 1.54%) and 3.12% (from 2.79%) respectively.

In the new week, T-bills worth N413.10 billion will mature via the primary market which will outweigh T-bills
worth N148.10 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N4.45 billion, 182- day bills worth N14.00 billion and 364-day bills worth N129.65 billion. Hence, we expect the stop rates of the issuances to decline as CBN issues lower than matured bills.

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