By Dipo Olowookere
Analysts at Lagos-based investment company, Cowry Asset, have hinted that interbank rates should ease this week amid expected boost in the financial sector.
During the week, the market also anticipates the maturity of treasury bills worth N131 billion through the Open Market Operations (OMO).
“In the new week, treasury bills worth N131.03 billion will mature via OMO; hence, we expect interbank rates to moderate amid anticipated boost in financial system liquidity,” Cowry Asset stated.
Last week, the Central Bank of Nigeria (CBN) refinanced matured T-bills worth N95.68 billion via primary
market at lower rates for all maturities; stop rate for the 91-day bill fell to 2.20 percent from 2.30 percent, the 182-day bill decreased to 3.20 percent from 3.40 percent and the 364-day bill fell to 4.30 percent from 4.60 percent respectively.
Also, treasury bills worth N288.54 billion matured via OMO, which, combined with the primary market maturities (N95.68 billion), resulted in total inflows worth N384.22 billion.
Given the net inflows of N380.22 billion as CBN sold only N4 billion worth of OMO, NIBOR moderated for all tenor buckets tracked amid financial liquidity ease: NIBOR for overnight funds, 1 month, 3 months and 6 months tenor buckets spiked to 3.05 percent from 18.67 percent, 11.54 percent from 15.32 percent, 12.13 percent from 16.00 percent and 13.36 percent from 17.32 percent respectively.
However, NITTY rose for most maturities tracked as investors demanded for higher yields despite the financial liquidity ease: yields on 1 month, 3 months and 6 months maturities rose to 2.16 percent from 2.10 percent, 2.35 percent from 2.33 percent and 3.13 percent from 3.01 percent respectively. On the flip side, yield on 12 months maturity fell to 4.27 percent from 4.37 percent.
Modupe Gbadeyanka