NIBOR Rises for All Tenor Buckets amid Renewed Liquidity Strain…


In the just concluded week, NIBOR rose for all tenor buckets tracked amid renewed financial system liquidity squeeze.

This was despite a net inflow of N20 billion as CBN only mopped up N50 billion of the N70 billion matured OMO bills.

Specifically, NIBOR for Overnight rate, 1 month, 3 months and 6 months tenor buckets rose to 14.50% (from 14.00%), 10.15% (from 9.63%), 10.53% (from 10.11%) and 10.95% (from 10.84%) respectively.

Meanwhile, despite the muted activity in the Primary Market, invstor sentiment was still negative as yields climbed northwards for most maturities tracked.

NITTY for 1 month 3 months and 6 months maturities increased to 2.83% (from 2.64%), 3.30% (from 3.13%) and 4.23% (from 3.83%) respectively.

However, NITTY for 12 months maturity moderated to 5.49% (from 5.53%).

In the new week, T-bills worth N147.62 billion will mature via the primary and secondary markets to exceed T- bills worth N77.62 billion which will mature via the primary market; viz: 91-day bills worth N4.22 billion, 182-day bills worth N7.46 billion and 364-day bills worth N65.93 billion.

Hence, we expect the stop rate to marginally decline as investors scramble for short term fixed income securities in the pre-election year.