In the just concluded week, CBN sold more T-bills (worth N109.41 billion) than the matured T-bills worth N37.82 billion in the primary market as stop rate moderated further at the longest end of the curve given the high subscription amount worth N556.16 billion.
In line with our expectations, stop rate for 365- Day bill fell to 8.67% (from 9.15%).
However, stop rates for 91-Day and 182-Day bills remained unchanged at 2.50% and 3.50% respectively.
In tandem with the declining stop
rate, NITTY declined for most maturities tracked amid demand pressure.
Notably, NITTY for 1 month, 3 months, 6 months and 12 months maturities moderated to 2.92% (from 3.12%), 3.98% (4.49%), 5.33% (from 5.80%) and 8.90% (from 9.35%) respectively.
Elsewhere, CBN issued a total of N20.00 billion to partly drain system liquidity as OMO Bills worth N20.00 billion matured. Nevertheless, NIBOR rose for most tenor buckets.
NIBOR for 1 month, 3 months and 6 months rose to 11.98% (from 10.84%), 12.94% (from 12.05%), and 14.32% (from 13.38%) respectively.
However, overnight funds rate crashed to 5.47% (from 20.06%).
In the new week, treasury bills worth N30.00 billion will mature via OMO; hence, we expect interbank rates to move in mixed directions amid marginal inflow of matured bills.