In the just concluded week, CBN auctoned
more T-bills (worth N258.53 billion) than the matured T-bills worth N216.19 billion in the primary market while stop rate further nosedived at the longest end of the curve given the high demand amount worth N452.93 billion.
In line with our expectations, stop rate
for 365-Day bill moderated to 8.20% (from
In tandem with the declining rate,
NITTY for 6 months and 12 months moderated
to 5.33% (from 5.58%) and 8.71% (from
However, NITTY for 1 month and 2 months rose to 3.43% (from 3.56%) and 4.29% (from 4.16%) respectively as traders bid high at those maturities.
Meanwhile, given the huge matured OMO bills worth N168.43 billion, NIBOR for Overnight funding dropped to 8.67% (from 12%) amid financial liquidity ease.
On the flip side, NIBOR for 1 month, 3 months and 6 months rose to 11.92% (from 10.82%), 13.50% (from 11.89%), and 14.55% (from 13.30%) respectively.
In the new week, we are expecting treasury bills worth N5.00 billion to mature via OMO; hence, we expect interbank rates to move higher amid tighter liquidity despite the anticipated marginal inflows