Money Market Yields Moderate Despite Muted Activity at the Primary Market…


In the just concluded week, activities in the primary market remained quiet as CBN did not offer t-bills.

In line with our expectations most of the yields moderated as traders maintained bullish stance.

Hence, NITTY for 3 months, 6 months and 12 months fell to 3.61% (from
3.79%), 4.63% (from 4.80%) and 6.66% (from
6.87%) respectively.

However, 1 month rose to 3.02% (from 2.92%).

Meanwhile, given the net inflow of N45.50 billion in OMO bills we saw liquidity boost in the interbank space, hence NIBOR fell for most of the tenor buckets tracked.

Notably, 1 month, 3 months and 6 months NIBOR moderated to 9.66% (from 9.67%), 10.67% (from 11.02%) and 11.30% (from 11.86%) respectively. However, overnight rate rose to 18.50% (from 17.17%).

In the new week, T-bills worth N151.73 billion will mature via the primary and secondary markets to exceed T- bills worth N118.73 billion which will be auctioned by CBN via the primary market; viz: 91-day bills worth N3.54 billion, 182-day bills worth N4.12 billion and 364-day bills worth N111.07 billion.

Cowry Research expects the stop rates of the 364-day to moderate amid expected boost in financial system liquidity.