In line with our expectations, CBN refinanced N7 billion worth of T-bills via the primary market at lower rates for most maturities amid investors demand.
Specifically, stop rates for 364-Day fell
sharply to 1.139% from the last auction high of 3.20%. Also, stop rates for 182-day bill moderated to 0.50% (from 0.60%).
However, stop rate for 91-day bill rose to 0.048% (from 0.01%).
Activity at the secondary market was
bullish as NITTY further contracted for most maturities tracked in tandem with declining stop rates.
Yields for 1 month, 3 months, 6 months and 12 months maturities fell to 0.24% (from 0.31%), 0.25% (from 0.40%), 0.39% (from 0.48%) and 0.75% (from 0.79%) respectively.
Meanwhile, treasury bills worth N283.16 billion which matured via Open Market Operations (OMO) boosted liquidty in the financial system.
Against the backdrop of liquidity ease, NIBOR for all maturities tracked declined except for the 6-month tenor which rose to 0.95% (from 0.88%).
NIBOR for Overnight, 1 month and 3 months fell to 0.81% (from 1.25%), 0.73% (from 0.79%) and 0.82% (from 0.83%) respectively.
In the new week, treasury bills worth N250.50 will mature via OMO; hence, we expect interbank rates to further decline amid anticipated boost in financial system liquidity