In the just concluded week, CBN offered T-bills worth N157.21 billion in the primary market and it was over subscribed by two times (N394.12 billion worth), while N307.34 billion worth of the bills was alloted to investors.
Hence, stop rate further plummeted at the
highest maturity amid increased demand
In line with our expectations, stop rate for 365-Day bill fell sharply to 6.80% (from 7.35%).
CBN appears to have been encouraged the relatively high economic growth of 5.01% y-o-y recorded in Q2 2021 as it kept interest rate low.
Elsewhere, NITTY for 3 months and 12 months further moderated to 3.28% (from 3.36%) and 7.07% (from 7.52%) respectively.
However, 1 month and 6 months rose to 2.53% (from 2.49%) and 4.49% (from 4.46%) respectively.
Meanwhile, given the relatively low value of matured OMO bills worth N60.00 billion, NIBOR for Overnight funding dropped to 11.40% (from 22.50%).
On the flip side, NIBOR rose for 1 month, 3 months and 6 months to 11.53% (from 9.13%), 10.48% (from 12.40%), and 13.25% (from 11.05%) respectively.
In the new week, treasury bills worth N293.87 billion will mature via OMO; hence, we expect interbank rates to move lower amid financial liquidity ease.