Tuesday, January 25, 2022

    Stop Rates of Auctioned T-Bills Surge for Most Maturities…

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    Naija247news Editorial Teamhttps://www.naija247news.com/
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    In the just concluded week, CBN refinanced
    N50.93 billion worth of T-bills via the primary market at relatively higher rates for most maturities.

    Notably, stop rate for 364-day bill
    came in suprisingly high at 3.20% (from 0.15%).

    Also, stop rates for 182-day bill increased to 0.60% (from 0.09%). However, stop rate for 91-day bill further mellowed to 0.01% (from 0.02%).

    Also, the apex bank auctioned N4.1 trillion worth of special T-bills to banks at 0.51%, following the announcement of special T-bills window lastweek.

    Hence, NITTY further moved northwards for all maturities tracked in tandem with the primary market rates, especially at the longer end.

    Yields for 1 month, 3 months, 6 months and 12 months maturities rose to 0.31% (from 0.04%), 0.40% (from 0.05%), 0.48% (from 0.28%) and 0.79% (from 0.11%) respectively.

    Meanwhile, given the N280.09 billion matured bills as against the N70 billion auctioned bills via Open Market Operations (OMO), NIBOR for overnight funds crashed to 1.25% (from 6.00%).

    However, NIBOR for 1 month, 3 months and 6 months rose to 0.79% (from 0.23%), 0.83% (from 0.27%) and 0.88% (from 0.33%) respectively

    In the new week, T-bills worth N344.64 billion will mature via the primary and secondary markets which will more than offset the T-bills worth N7.00 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N2.00 billion, 182-day bills worth N2.00 billion and 364-day bills worth N3.00 billion. We expect the stop rates to moderate amid relatively small amount of T-bills issuance.

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