Rates Oscillates Upward for Long-dated Maturities on Strong Demand…


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In the just-concluded week, the CBN
refinanced matured T-bills worth N133.69
billion via the primary market at higher rates
for all maturities; the stop rate for the 91-day
bill rose to 3.00% (from 0.10%), the 182-day
bill increased to 3.24% (from 0.30%), and
the 364-day bill jumped to 9.90% (from
2.24%), respectively.

Also, N70 billion worth of Treasury bills matured via OMO, which, combined with the primary market
maturities, resulted in total inflows worth
N203.69 billion.

Given the huge inflows of N380.22 billion as well as FAAC allocations for January worth N750.17 billion, NIBOR moderated for all tenor buckets tracked amid the financial liquidity boost: NIBOR for overnight funds, 1-month, 3-month, and 6-month tenor buckets sank to 10.90% (from 16.40%), 10.95% (from 16.15%), 11.75% (from 16.80%), and 12.40% (from 17.00%), respectively.

However, NITTY rose for most maturities tracked as investors demanded higher yields despite the financial liquidity ease: yie lds on 1-month,3-month,6-month,and12-monthtenorbucketsroseto2.77%(from1.44%),3.46%(from1.86%),4.19%(from2.40%), and 5.88% (from 3.88%), respectively.

In the new week, Treasury bills worth N5.00 billion will mature via OMO; hence, we expect interbank rates to rise amid an anticipated strain in financial system liquidity…

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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