NITTY Rises for All Tenor Buckets on Financial Liquidity Strain…

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In the just concluded week, In the just concluded week, CBN allotted T-bills worth N167.1 billion to refinance the N90.38 billion worth of matured treasury bills.

Notably, given the almost 2x over-subscription level, the stop rate for 182-day bill and 364-day bill fell to 3.84% (from 3.89%) and 6.44% (from 6.49%) respectively.

Stop rate for 91-Day bill was unchanged at 2.5%. Hence, the net sentiment eclipsed both the 3-month and 6 months tenor buc inflow worth N76.72 billion resulted in a boost in financial system liquidity – given the absence of sales of secondary market instruments.

Meanwhile, NIBOR for Overnight, 3 month and 6 months maturities increased to 11.50% (from 7.50%), 10.29% (from 10.03) and 11.48% (from 11.08%) respectively, while the 3 months maturieies decreased to 0.15% from 9.36%. NITTY closed southward.

Specifically NITTY for 1 month, 3 months, 6 months and 12 months tenor decreased to 3.19% (from 3.43%), 3.67% (from 3.74%), 4.27% (from 4.30%) and 6.32% (from 6.49%).

In the new week, OMO worth N20 billion will mature via the secondary market also NTB worth of N12.66 billion will mature in the coming week.

Hence, hence, we expect interbank rates to move in mixed directions amid marginal inflow of matured bills