WeekAheadMoneyMarket: CBN seen roll-over T-bills as Investors target fixed income assets

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In the new week, CBN will rollover T-bills worth N33.84 billion, viz: 91-day bills worth N3.39 billion, 182-day bills worth N16.92 billion and 364-day bills worth N13.54 billion. We expect their stop rates to decrease marginally, given the increasing preference for fixed income assets by investors.

We also expect NIBOR to moderate amid maturing N140.95 billion T-bills.

Meanwile in the just concluded week, CBN auctioned Treasury Bills worth N613.26 billion through Open Market Operation (OMO) which offset the matured bills worth N196.41 billion. Amid financial system liquidity squeeze, NIBOR rose for most tenure buckets: NIBOR for overnight funds rate, 3 months and 6 months tenure buckets rose to 9.17% (from 5.25%), 12.72% (from 11.88%) and 14.36% (from 14.31%) respectively; however, NIBOR for 1 month moderated to 11.83% (from 11.84%).

Meanwhile, NITTY moved in mixed directions across maturities tracked – yields on 3 months and 6 months increased to 11.51% (from 10.73%) and 13.31% (from 13.27%) respectively; however, yields on 1 month and 12 months maturities declined to 10.25% (from 10.84%) and 14.16% (from 14.49%) respectively.

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