In the just concluded week, CBN auctoned
more T-bills (worth N156.32 billion) than the matured T-bills worth N51.49 billion in the primary market while stop rate further nosedived at the longest end of the curve given the high demand worth N398.37 billion.
In line with our expectations, stop rate for 365-Day bill fell sharply to 7.35% (from 8.20%) as CBN sign-posted its preference for lower rates in line with its goal of stimulating economic growth.
NITTY for 1 month, 2 months, 6 months and 12 months further moderated to 2.53% (from 2.59%), 3.28% (from 3.52%), 4.17% (from 4.72%) and 7.77% (from 8.43%) respectively in tandem with the direction at the primary market.
Meanwhile, given the relatively large value of matured OMO bills worth N78.71 billion, NIBOR fell for all maturities tracked amid financial liquidity ease.
Specifically, NIBOR for Overnight funding, 1 month, 3 months and 6 months rose to 16.00% (from 18.00%), 11.69% (from 15.65%), 12.60% (from 16.93%), and 14.59% (from 18.05%) respectively.
In the new week, we are expecting treasury bills worth N91.00 billion to mature via OMO; hence, we expect interbank rates to move lower amid financial liquidity ease.