NITTY Falls for All Tenor Buckets Tracked on Buy Pressure…

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In the just concluded week, CBN sold T-bills
worth N264.29 billion to completely mop
up the same amount of matured treasury bills.

Notably, the 91-days and the 182-
days bill were issued at higher rate amid
weak investor appetite.

Hence, we saw increase in stop rate for 91-Days bill to 2.88% from 2.70% and for the 182-days
from 4.00% to 4.10% while the stop rates
for 364-Day bill was unchanged at 7.00%.

Activities in the secondary market was
largely bullish.

Hence, NITTY for 1 months, 3 months, 6 months and 12 months fell to 4.36% (from 9.69%), 5.32% (from 10.02%), 6.00% (from 10.50%) and 8.18% (from 9.90%) respectively.

Meanwhile, amid maturing OMO bills worth N30.00 billion and no auctions, we saw a net inflow of N30.00 billion in the course of the week.

Hence, NIBOR fell for most of the tenor buckets tracked. 3 months and 6 months NIBOR moderated to 9.83% (from 11.82%) and 11.05% (from 11.11%) respectively while the 1 month tenor rose to 11.19% (from 10.81%) .

The Overnight tenor bucket remained unchanged

In the new week, we expect activity in the money market to be bearish amid limited maturing treasury and OMO bills.

Investors who won the auctions are expected to dispose them amid anticpation of rising rates in a fortnight.