NIBOR Falls for Most Maturities amid Financial System Liquidity Boost…

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In the just concluded week, treasury bills worth N224.45 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.

Despite the liquidity boost, NIBOR for all maturities rose: NIBOR for overnight, 1 months, 3 months and 6 months increased to 9.50% (from 1.40%), 1.23%
(from 0.94%), 1.65% (from 0.95%) and 1.52%
(from 1.47%) respectively.

Elsewhere, NITTY further moved northward for most maturities tracked, especially yields for 1 month, 3 months and 6 months maturities which increased to 0.26% (from 0.22%), 0.57% (from 0.25%) and 0.52% (from 0.29%) respectively. However, yield on 12 months maturity fell to 0.59% (from 0.62%).

In the new week, T-bills worth N167.81 billion will mature via the primary which will equate T-bills worth N167.81 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N19.78 billion, 182-day bills worth N40.09 billion and 364-day bills worth N107.93 billion.

Hence, we expect the stop rates of the issuances to decline amid demand pressure.

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