By Dipo Olowookere
Last week, treasury bills worth N226.68 billion were sold by the Central Bank of Nigeria (CBN) via the Open Market Operations (OMO) to refinace the matured T-bills worth N226.68 billion.
As a result, according to analysts at Cowry Asset, NIBOR for all tenor buckets rose on renewed liquidity strain: NIBOR for overnight, 1 month, 3 months and 6 months tenor buckets rose w-o-w to 3.59% (from 3.38%), 12.05% (from 11.31%), 14.00% (from 12.57%) and 15.84% (from 13.56%) respectively.
Elsewhere, NITTY rose for most maturities tracked on renewed sell pressure: yields on the 1 month, 3 months and 6 months maturities rose to 8.68% (from 8.16%), 10.92% (from 10.01%) and 11.55% (from 11.15%) respectively; however, yield on the 12 months maturity fell to 12.62% (from 12.90%) respectively.
Meanwhile, Standing Deposit Facility (SDF) worth N735.43 billion outweighed, Standing Lending Facility (SLF) worth N289.21 billion.
This week, T-bills worth N371.83 billion will mature via both the primary and secondary market while N626.8 billion that will be disburbed by Federation Account allocation Committee (FAAC) should boost liquidity; hence, we expect ease in financial system liquidity with accompanying moderation in interbank rate.
more recommended stories
MPC Meeting: CBN Keeps Benchmark Rate at 14%
By Dipo Olowookere For the 15th.
Asian Stocks Drop Sharply after IMF Slashes Global Forecast
Asian stocks fell broadly on Tuesday.
European Markets Fall Amidst Fresh Brexit Worries
By Investors Hub European stocks have.
US Shares Open Lower on Global Economic Concerns
By Investors Hub The major U.S..