In the just concluded week, given the
muted activity in the Treasury Bill
primary market, which led to strong
demand in the secondary market,
investors scrambled for T-bills,
particularly longer-dated tenor
buckets.
Specifically, NITTY fell for 6-
month and 12-month maturities to
6.48% (from 6.79%), and 9.67% (from
9.87%), respectively.
The central bank’s hawkish stance on monetary
policy, evident in the recent hike in the
monetary policy rate to 18.00%, was
reflected in the rise of NIBOR for 1-
month and 3-month maturities as their corresponding yields rose to 3.76%
(from 3.62%) and 4.82% (from 4.70%), respectively.
Meanwhile, the OMO space was dry as well, as there were no refinanced or maturing bills from the Apex bank.
Notably, allocations from the Federation Account Allocation Committee (FAAC) totalled N722.68 billion, which bolstered liquidity but was offset in part by outflows from the FGN Bond Auction totalling N563 billion.
As borrowing costs rose, NIBOR for overnight funds, 1 month, 3 months, and 6 months ballooned to 18.88% (from 11.11%), 16.88% (from 11.23%), 17.38% (from 11.98%), and 17.38% (from 12.95%), respectively.
In the new week, CBN will auction T-bills worth N145.46 billion through the primary market, viz: 91-day bills worth N2.16 billion, 182-day bills worth N3.34 billion, and 364-day bills worth N139.96 billion. Cowry Research anticipates a slight decrease in 364-day stop rates…
