NITTY Moves in Mixed Directions amid Muted Primary Market Activity…

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In the just concluded week, activity in the primary market was muted as CBN did not offer treasury bills for sale.

Thus, this led to a mixed bag peformance across the maturities tracked in the secondary market.

Hence, NITTY for 1 month and 3 months fell to fell to 3.06% (from 3.10%) and 3.43% (from 3.50%) respectively.

On the flip side, True Yields for 6 months and 12 months rose to 4.70% (from 4.53%) and 6.09% (from 6.04%) respectively.

Meanwhile, there was a repayment of N37.00 billion out of N54.30 billion OMO bills which matured in the course of the week.

Despite the net inflow worth N17.30 billion, NIBOR rose for all of the tenor tracked.

Specifically, overnight, 1 month, 3 months and 6 months NIBOR rose to 14.10% (from 9.40%), 11.35% (from 9.36%), 11.82% (from 9.62%) and 12.42% (from 10.39%) respectively.

In the new week, T-bills worth N65.03 billion will mature via the primary and secondary markets to exceed T-bills worth N15.03 billion which will mature via the primary market; viz: 91-day bills worth N4.94 billion and 182-day bills worth N10.09 billion.

Cowry Research does not expect CBN to refinance the maturing bills in the primary market in line with its usual tradition of limited auction in the month of December.

Hence, we expect marginal boost in the financial liquidity system to ease interbank offered rate in the new week.