NITTY Rises for All Tenor Buckets on Sustained Financial Liquidity Strain…

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In the just concluded week, CBN allotted T-
bills worth N174.06 billion to refinance the
N64.66 billion worth of matured treasury bills.

Notably, given the over-subscription of the 91
Days, the stop rate fell to 2.40% (from 2.49%).

Despite the huge sale of N174.06 billion. Stop
rates for 182-Day bill and 364-day bill were
unchanged at 3.79% and 6.07% respectively.

Despite the bullish mood in the primary
market, NITTY rose for Overnight, 1 month, 3
months, 6 months and 12months maturities
4.16% (from 3.73%), 4.79% (from 4.26%), 5.44% (from 4.97%) and 6.55% (from 6.49%) respectively.

Given the lack of activity in the OMO space, NIBOR for most tenor buckets closed southward. 1 month, 3 months, 6 Months and 12 Months tenor buckets rose to 13.73% (from 14.20%), 7.29% (from 11.12%), 9.89% (from 12.33%) and 9.68% (from 13.16%) respectively.

In the new week, we expect activity in the money market to be slightly bullish as the financial system liquidity should be boosted by the maturing N20 billion worth of OMO bills – hence, we anticipate a fall in NIBOR for most tenor buckets.