NIBOR Rises for Most Tenor Buckets on Financial Liquidity Strain…

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In the just concluded week, CBN allotted T-
bills worth N137.86billion to refinance the
N97.94 billion worth of matured treasury bills.
Specifically, the 364-day bill was issued at a
lower rate as investors subscription were three
times higher than offer.

Hence, stop rate for 364-day bill decreased to 4.70% from (4.74%). However,the stop rate for 91-Day and 182- Day bill remain flat at 1.47% and 3%
respectively.

NIBOR moved in mismag directions for the tenor buckets tracked amid a net inflow of N39.50 billion as CBN only partly filled investors orders.

Specifically, NIBOR for Overnight rate and 1 month tenor buckets rose to 10.57% (from 9.25%) and 9.33% (from 9.25%) respectively.

However, 3 months and 6 months tenor buckets fell to 10.235% (from 10.33%) and 10.44% (from 10.55%) respectively.

Also, NITTY rose for most maturities tracked amid liquidity strain. Specifically NITTY for 1 month, 3 month and 6 month rose by 0.14 to 3.07% (from 2.93%), 0.28 to 3.57% (from 3.29%) and 0.09 to 3.88% (from 3.79%) respectively.

NITTY for 12 month maturities however, fell by 0.20 to 4.84% (from 5.04%) respectively. However, Overnight tenor bucket fell to 9.25% (from 9.40%)

In the new week, we expect activity in the money market to be slightly bearish as the financial system liquidity may rather come in low given the little to no maturing bills…