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

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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.