In the just concluded week, activity in the primary market was quiet given the zero matured and auctioned Treasury bills.
This created a buying sentiment in the secondary market as investors rushed to this space to mop up bills ahead of next week’s auction. Hence, NITTY fell for most maturities.
Specifically, NITTY for 3 months, 6 months, and 12 months moderated to 3 MTHS NIBOR (from 4.14%), respectively.
However, NITTY for 1 month rose to 1.28% (from 1.00%).
Meanwhile, we saw a bit of liquidity squeeze in the interbank space, hence NIBOR rose for all tenor buckets tracked.
Notably, overnight, 1 month, 3 months, and 6 months NIBOR rose to 12.60% (from 10.88%), 13.15% (from 12.50%), 13.80% (from 13.00%), and 14.30% (from 13.81%), respectively.
In the new week, we expect activity in the money market to be bullish as the market expects a liquidity boost from the maturing N154.12 billion worth of Treasury and OMO bills…