In the just concluded week, CBN issued a total of N17.06 billion at the OMO auction to partly drain sytem liquidity arising from matured OMO bills worth N30.00 billion.
Given the net inflows worth N2.94 billion, NIBOR nosedived for most tenor buckets.
Specifically, Overnight funds, NIBOR for 1 month, 3 months and 6 months tenor buckets fell to 14.70% (from 21.17%), 9.23% (from 12.57%), 10.19% (from 13.87%) and 10.83% (from 15.25%) respectively.
Elsewhere, NITTY continued to rise for all
maturities tracked as traders demanded for higher yields amid expectation of an increase in stop rates; specifically, 1 month, 3 months, 6 months and 12 months maturities climbed to 2.21% (from 2.09%), 3.08% (from 2.78%), 4.42% (from 4.29%) and 8.90% (from 8.81%) respectively
In the new week, T-bills worth N207.55 billion will mature via the primary and secondary markets to more than offset the T-bills worth N117.55 billion which will be auctioned by CBN via the primary market; viz: 91-day bills worth N24.67 billion, 182-day bills worth N10.00 billion and 364-day bills worth N82.88 billion.
We expect the stop rate for the 364-day bill to increase while those of 91-day and 81-day bills remain flattish