NIBOR Falls for Most Maturities amid Boost in Financial System Liquidity…

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In the just concluded week, treasury bills worth N567.68 billion which matured via the Open Market Operation (OMO) resulted in a boost in financial system liquidity – in the absence of sales of money market instruments.

Hence, NIBOR for most maturities dropped: NIBOR for 1 month, 3 months and 6 months moderated to 1.90% (from 2.32%), 2.13% (from 2.45%) and 2.39% (from 2.89%) respectively.

However, NIBOR for Overnight funds rose sharply to 11.50% (from 2.63%).

Elsewhere, NITTY moved northward for most maturities tracked, especially yields for 3 months and 6 months maturities which increased to 1.03% (from 0.93%) and 1.34% (from 1.27%) respectively.

However, yield on 1 month maturity was flat at 0.83% while for 12 months maturity fell to 2.05% (from 2.10%).

In the new week, T-bills worth N494.87 billion will mature via the primary and the secondary markets which will outweigh T-bills worth N104.87 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N8.84 billion, 182-day bills worth N3.50 billion and 364-day bills worth N92.53 billion.

Hence, we expect the stop rates of the issuances to decline amid demand pressure even as N370 billion worth of OMO bills mature.

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