By Cowry Asset
In the just concluded week, treasury bills worth N89.96 billion matured, resulting in liquidity boost.
The maturities included: 196-day bills worth N14.42 billion and 357-day bills worth N75.54 billion.
Consequently, NIBOR decreased across all of the maturities in line with our expectations; NIBOR for overnight funds, 1 month, 3 months and 6 months fell w-o-w to 10.75% (from 15.25%), 19.24% (from 20.36%), 21.61% (from 21.96%) and 23.48% (from 23.74%) respectively.
Elsewhere, NITTY increased across most of the maturities amid sell pressure – yields on 3 months, 6 months and 12 months rose to 19.55% (from 19.19%), 20.61% (from 20.38%) and 22.59% (from 22.30%) respectively.
This week, there will be maturing treasury bills worth N238.733 billion viz: 91-day bills worth N12.295 billion, 364-day bills worth N129 billion and 353-day bills worth N97.438 billion which will more than offset treasury bills auctions worth N204.96 billion, viz 91-day bills worth N36.786 billion, 182-day bills worth N39.175 billion and 364-day bills worth N129 billion. Hence, we expect financial system liquidity ease and resultant stability in interbank rates.
Adedapo Adesanya