In the just concluded week, CBN issued a total of N12.84 billion at the OMO auction to partly drain sytem liquidity as OMO bills worth N20.00 billion matured.
Given the net inflows worth N7.16 billion, NIBOR moderated for most tenor buckets.
Specifically, Overnight funds, NIBOR for 1 month and 6 months tenor buckets fell to 14.83% (from 21.33%), 7.32% (from 7.72%)and 9.03% (from 9.12%) respectively.
However, NIBOR for 3 months rose to 8.58%
Meanwhile, NITTY rose for all maturities tracked ahead of the upcoming primary auction.
NITTY for 1 month, 3 months, 6 months and 12 months maturities climbed to 1.99% (from 1.97%), 2.62% (from 2.54%), 3.89% (from 3.84%) and 8.48% (from 8.27%) respectively
In the new week, T-bills worth N128.45 billion will mature via the primary and secondary markets to more than offset the T-bills worth N88.45 billion which will be auctioned by CBN via the primary market; viz: 90-day bills worth N11.38 billion, 182-day bills worth N6.00 billion and 364-day bills worth N71.07 billion.
We expect the stop rates of the new issuances to increase, especially for the 364-day bill.