In the just concluded week, CBN issued a total of N20.00 billion at the OMO auction for 96- day (N5 billion at 7%), 173-day (N5 billion at 8.50%) and 341-day (N10 billion at 10.10%) to partly drain sytem liquidty given the maturing OMO bills worth N34 billion.
Nevertheless, NIBOR moved in mixed directions across tenor buckets.
While overnight funds and NIBOR for 1 month rose to 13.73% (from 11.67%) and 5.45% (from 5.44%), respectively, NIBOR for 3 months and 6 months tenor buckets fell to 6.93% (from 6.94%) and 8.31%(from 8.51%)
Elsewhere, NITTY continued to move northwards for most maturities amid traders’ sell-offs.
NITTY for 3 months, 6 months and 12 months maturities rose to 2.22% (from 2.21%), 3.78% (from 3.69%) and 7.01% (from 6.01%) respectively. However, NITTY for 1 month fell to 1.82% (from 1.93%).
In the new week, T-bills worth N89.56 billion will mature via the primary and secondary markets to more than offset the T-bills worth N69.56 billion which will be auctioned by CBN via the primary market; viz: 92-day bills worth 15.92 billion, 182-day bills worth N4.50 billion and 364-day bills worth N49.14 billion.
We expect the stop rates of the new issuances to marginally increase.