Monday, June 21, 2021

    WeekAHead: T-Bills seen mature via OMO as interbank rates moderates

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    Naija247news Media, New York
    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 sold more T-bills (worth N151.13 billion) than the matured T-bills worth N63.18 billion in the primary market with stop rates moving in mixed directions across maturities.

    Specifically, stop rates for 91-Day bill rose to 2.50%(from 2.00%) while that of 182-Day bill remained flat at 3.50%.

    However, stop rate for 365-Day bill
    moderated to 9.65%(from 9.75%).

    Despite the movement of rates in mixed directions at the Primary market, true yields in the secondary market moved largely upward.

    Specifically, NITTY for 1 month, 6 months and 12 months maturities rose to 2.37%(from 2.14%), 4.92%(from 4.78%) and 9.36% (from 9.16%) respectively.

    However, NITTY for 3 months fell to 3.42%(3.79%). Elsewhere, CBN issued a total of N41.00 billion at the OMO auction to partly drain sytem liquidity as OMO bills worth N110.00 billion matured.

    Given the net inflows worth N69.00billion, NIBOR for 1 month, 3 months and 6 months moderated to 11.18% (from 11.20%), 12.27% (from 12.34%) and 13.29% (from 13.86%) respectively.

    However, NIBOR for overnight funds rose to 18.37% (from 18.00%).

    In the new week, we expect Naira/USD to stabilize at most FX Windows as crude oil prices at the interntional market remain relatively high.

    In the new week, treasury bills worth N55.46 billion will mature via OMO; hence, we expect interbank rates to move in mixed directions amid marginal inflow of matured OMO bills.

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