In the just concluded week, CBN sold more T-bills (worth N179.26 billion) than the matured T-bills worth N91.28 billion in the primary market with stop rates staying flat for most maturities.
Specifically, stop rates for 91-Day and 182-Day bills remained at 2.50% and 3.50% respectively.
However, stop rate for 365- Day bill moderated to 9.64%(from 9.75%) in line with our expectation. Given the bullish sentiment at the Primary market, true yields in the secondary market mostly fell.
Specifically, NITTY for 1 month, 3 months and 12 months maturities fell to 3.02% (from 3.26%), 4.47% (4.57%) and 9.62% (from 9.63%) respectively.
However, NITTY for 6 months rose to 6.15% (from 6.06%).
Elsewhere, CBN issued a total of N30 billion at the OMO auction to partly drain sytem liquidity as OMO bills worth N80 billion was repaid.
Despite the net inflows worth N50 billion, NIBOR for overnight, 1 month, 3 months and 6 months rose to 21.35% (from 15.01%), 12.00% (from 11.70%), 13.20% (from 12.90%) and 14.94% (from 14.60%) respectively.
In the new week, T-bills worth N60.83 billion will mature via the primary and secondary markets to more than offset the T-bills worth N14.83 billion which will be auctioned by CBN via the primary market; viz: 90-day bills worth N2.52 billion, 182-day bills worth N1.70 billion and 364-day bills worth N10.61 billion.
We expect the stop rates of the new issuances to moderate amid expected boost in financial system liquidity