By Modupe Gbadeyanka
The Central Bank of Nigeria (CBN), this week, sold treasury bills via primary and secondary markets, totalling N197.28 billion viz: 84-day bills worth N0.050 billion, 87-day bills worth N0.020 billion, 91-day bills worth N22.92 billion (Stop Rate, SR, 13.25 percent), 182-day bills worth N25.14 billion (SR, 17.36 percent), 191-day bills worth N4.31 billion, 192-day bills worth N7.08 billion, 194-day bills worth N11.67 billion and 364-day bills worth N126.09 billion (SR, 17.95 percent).
According to Cowry Asset, the outflows were more than offset by matured treasury bills worth N333.83 billion.
Consequently, NIBOR fell for most of the maturities amid liquidity ease: NIBOR for the Overnight funds, 1 month and 3 months tenor buckets fell w-o-w to 12.00 percent (from 46.68 percent), 17.44 percent (from 19.31 percent) and 20.48 percent (from 21.17 percent) respectively.
However, NIBOR for the 6 months placement tenor rose w-o-w to 22.93 percent (from 22.64 percent).
Elsewhere, NITTY moved in mixed directions across the maturities as yields on the 1month and 3 months rose to 15.43 percent from (15.21 percent) and 18.30 percent (from 17.83 percent).
For the 6 months and 12 months maturities however, NITTY fell to 19.16 percent (from 19.32 percent) and 20.62 percent (from 21.03 percent) respectively.
This week, there will be maturing treasury bills worth N140.88 billion viz: 91-day bills worth N28.12 billion, 182-day bills worth N23.68 billion and 364-day bills worth N89.08.
This will be offset by treasury bills auctions of the same values and tenors.
Hence, at the interbank market, we expect financial system liquidity strain with resultant increase in interbank rates.
Adedapo Adesanya