NIBOR Rises for All Tenor Buckets amid Renewed Liquidity Strain…

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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.