In the just concluded week, CBN auctioned
more T-bills worth N30.58 billion than matured T-bills worth N14.84 billion in the primary market with stop rates remaining flattish for most maturities.
Particularly, stop rates for 91-Day and 182-Day bills were flattish at 2.50% and 3.50% respectively.
However, stop rate for 365-Day bill moderated to 9.40% (from 9.64%) as inflation rate declined and exchange rate appreciated strongly w-o-w.
Despite the buy pressure at the Primary market, true yields in the secondary market moved northwards for all maturities tracked.
Specifically, NITTY for 1 month, 3 months, 6 months and 12 months maturities rose to 3.81% (from 3.02%), 5.04% (4.47%), 6.50% (from 6.15%) and 9.76% (from 9.62%) respectively.
Elsewhere, CBN issued a total of N30.58 billion at the OMO auction to partly mop upsytem liquidity as OMO bills worth N46 billion was repaid.
Given the net inflow worth N15.42 billion NIBOR for overnight, 1 month, 3 months and 6 months moderated to 17.73% (from 21.35%), 11.09% (from 12.00%), 12.41% (from 13.20%) and 13.59% (from 14.94%) respectively.
It appears that the huge standing lending facility worth N164.56 billion, which was 6.8 times greater than the standing deposit facility worth N21.10 billion, contributed to the excess liquidity as deposit money banks got funding from CBN.
n the new week, treasury bills worth N15.00 billion will mature via OMO; hence, we expect interbank rates to move in mixed directions amid marginal inflow of matured OMO bills.