Investors Bullish on NITTY ahead of MPC Meeting in the New Week…


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

This created a buy sentiment in the secondary market as investors rushed to this space to mop up bills.

NITTY for 1 month 3 months and 6 months maturities decreased to 2.83% (from 2.94%), 3.40% (from 3.45%) and 4.31% (from 4.46%) respectively.

However, yield on 12 months maturity increased to 5.98% (from 5.70%).

Meanwhile, NIBOR moderated for most tenor buckets tracked amid an inflow worth N128.18 billion in the review week. Specifically,

NIBOR for 1 month, 3 months and 6 months tenor buckets moderated to 7.15% (from 10.13%), 8.89% (from 10.95%) and 9.02% (from 10.98%) respectively. However, Overnight rate and rose to19.67% (from 14.00%).

In the new week, T-bills worth N239.33 billion will mature via the primary and secondary markets to exceed T- bills worth N129.33 billion which will mature via the primary market; viz: 91-day bills worth N2.68 billion, 182- day bills worth N3.54 billion and 364-day bills worth N123.11 billion.

Hence, we expect the stop rate to marginally increase as investors bid higher to compensate for the increased level of uncertainty.