NIBOR Rises Across Tenor Buckets Despite Financial Liquidity Ease

By Cowry Asset

In the just concluded week, Central Bank of Nigeria (CBN) auctioned treasury bills via primary market, viz: 91-day bills worth N23.055 billion (Stop Rate, SR, fell to 13.422% from 13.425%) 182-day bills worth N69.565 billion (SR rose to 17.40% from 17.3989%) and 364-day bills worth N136.522 billion (SR fell to 18.530% from 18.549%) which was more than offset by matured treasury bills worth N314.558 billion.

However, NIBOR increased across all the maturities in spite the renewed liquidity ease. This was partly due to demand for the purchase of foreign exchange. NIBOR for overnight funds, 1 month and 6 months rose w-o-w to 21.67% (from 5.92%), 18.20% (from 16.99%) and 23.46% (from 22.36%) respectively.

Elsewhere, NITTY moved in mixed directions across the maturities – yields on 3 months and 6 months rose to 18.99% (from 18.95%) and 19.84% (from 19.82%) respectively.

However, the yields on 1 month and 12 months maturities fell to 12.00% (from 12.51%) and 22.29% (from 22.46%) respectively.

This week, in the absence of maturities and auctions, we expect further financial system liquidity ease and resultant stability in interbank rates.