NIBOR Moves in Mixed Directions

By Cowry Assets

Last week, 282-day bills worth N7 billion matured, however, interbank rates moved in mixed directions across the tenor buckets.

NIBOR for overnight funds and 1 month fell to 14.63 percent (from 38.46 percent) and 20.74 percent (from 20.77 percent) respectively.

However, the 3 months and 6 months rose week-on-week to 22.39 percent (from 21.24 percent) and 24.73 percent (from 23.21 percent) respectively.

Elsewhere, NITTY increased across most of the maturities amid sell pressure – yields on 1 month, 3 months and 6 months maturities rose week-on-week to 20.18 percent (from 19.32 percent), 19.39 percent (from 19.23 percent) and 21.39 percent (from 20.93 percent) respectively.

However the 12 months maturity fell to 22.54 percent (from 22.63 percent).

This week, treasury bills worth N181.899 billion will mature which will offset treasury bills auctions worth N117.148 billion via primary market, viz: 91-day bills worth N26.143 billion, 182-day bills worth N11.005 billion and 364-day bills worth N80 billion.

Hence, there is the expectation in improvement in financial system liquidity and resultant moderation in interbank rates.