At the close of the trading week, CBN auctioned treasury bills worth N316.23 billion via the Secondary Market.
The total outflows worth N316.23 billion was offset by the inflows from the matured T-bills worth N375.98 billion.
Hence, NIBOR for 6 months fell to 14.34% (from 14.45%). However, NIBOR rose for most tenor buckets tracked amid renewed financial system liquidity strain: NIBOR for overnight, 1 month and 3 months rose to 4.81% (from 4.42%), 13.07% (from 12.07%) and 13.98% (from 13.49%) respectively.
Meanwhile, NITTY rose for most maturities tracked amid renewed sell pressure: yields on 1 months, 3 months and 12 months maturities increased to 12.25% (from 10.43%), 13.24% (from 12.37%) and 16.50% (from 16.49%) respectively; however, NITTY for 6 months moderated to 13.28% (from 13.34%).
This week, T-bills worth N552.07 billion will mature via the primary and secondary markets which will more than
offset T-bills worth N128.24 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N3.38
billion, 182-day bills worth N16.92 billion and 364-day bills worth N107.94 billion.
Hence, we expect liquidity
ease in the finanical system to be sustained with resultant moderation in interbank rates.
We also expect stop rates to increase, especially for 364-day amid wider spread in yields between the primary and secondary markets.