By Cowry Asset
In the just concluded week, the Central Bank of Nigeria (CBN) sold treasury bills via the secondary markets totalling N59.13 billion.
A breakdown of the sale revealed that 178-day bills worth N55.01 billion and 184-day bills worth N4.12 billion were transacted.
These auctions were more than offset by matured secondary market securities worth N123.53 billion.
Consequently, NIBOR fell for most of the tenor buckets amid financial system liquidity ease as maturities exceeded auctions- NIBOR for the Overnight funds, 3 months and 6 months fell w-o-w to 13.85% (from 32.39%) 21.21% (from 21.44%) and 22.58% (from 22.61%) respectively.
However, NIBOR for the 1 month tenor bucket rose w-o-w to 18.77% (from 18.53%).
Elsewhere, NITTY rose for most of the maturities amid profit taking activities – yield on the 1month, 3 months and 6 months maturities rose to 17.04% (from 11.31%), 19.14% (from 17.59%) and 18.90% (from 17.91%) respectively.
However, for the 12 months maturity, NITTY fell to 19.29% (from 19.36%).
This week, there will be maturing primary and secondary market securities totalling N413.77 billion viz: 91-day bills worth N28.69 billion; 182-day bills worth N33.49 billion, 252-day bills worth N0.28 billion, 363-day bills worth N283.13 billion and the 364-day bills worth 68.18 billion.
Furthermore, there will be treasury bills auction via primary market during the week totalling N130.36 billion viz: 91-day bills worth N28.69 billion, 182-day bills worth N33.49 billion and 364-day bills worth 68.18 billion.
As a result, at the interbank market, we expect a slight easing of the financial system liquidity with resultant decrease in rates.
Adedapo Adesanya