In the just concluded week, activities in the primary market remained quiet as CBN did not offer T-bills for sale to refinance the maturing N44.84 billion worth of T- bills, thus giving the net inflow yields moderated as traders maintained a bullish stance.
Hence, NITTY for 1 month, 3 months, and 12 months fell to 5.13% (from 5.56%), 6.24% (from 6.60%), and 10.60% (from 13.25%), respectively.
However, the 6 months NIBOR rose to 8.83% (from 7.96%).
Meanwhile, given the net inflow of N5.5 billion in OMO bills without refinancing as well as FAAC inflows worth N440 billion, we saw a liquidity boost in the interbank space, hence NIBOR fell for all of the tenor buckets tracked.
Notably, NIBOR for overnight funds, 1 month, 3 months, and 6 months moderated to 9.73% (from 10.00%), 11.50% (from 13.75%), 11.98% (from 14.94%), and 12.50% (from 16.56%), respectively.
the new week, OMO worth N30 billion will mature via the secondary market, and NTB worth N44.11 billion will mature as well to help keep system liquidity afloat.
Hence, we expect activity in the money market to be slightly bullish…