Monday, September 27, 2021

    Stop Rates Settle Well Below 1% across All Maturities Issued…

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    Naija247news Editorial Team
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    In line with our expectations, CBN refinanced N154.35 billion worth of T-bills via the primary market at lower stop rates which settled below 1% for all maturities – reflective of the high level
    of liquidity in the system that continued to chase short-term government securities.

    Specifically, stop rates for 91-day, 182-day and 364-day bills crashed to 0.34% (from 1.00%), 0.50% (from 1.00%) and 0.98% (from 2.00%) respectively.

    Given the N336.08 billion matured bills via Open Market Operations (OMO), we saw a boost in the financial system liquidity and a resultant drop in NIBOR for all tenor buckets.

    NIBOR for overnight funds crashed to 1.40% (from 13.00%).

    Also, NIBOR for 1 month, 3 months and 6 months plummeted to 0.94% (from 1.70%), 0.95% (from 1.91%) and 1.47% (from 1.87%) respectively.

    Elsewhere, NITTY further moved southward for all maturities tracked amid sustained demand pressure.

    Specifically, yields for 1 month, 3 months, 6 months and 12 months maturities moderated to 0.22% (from 0.40 %), 0.25% (from 0.49%), 0.29% (from 0.58%) and 0.62% (from 1.10%) respectively.

    In the new week, treasury bills worth N224.45 billion will mature via OMO; hence, we expect interbank rates to further moderate amid anticipated boost in financial system liquidity.

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