Stop Rates for Most Maturities Inched Up on Investors’ Demand for Higher Returns…


In the just concluded week, the apex bank, CBN, refinanced the matured T-bills worth N223.23 billion via the Primary Market. Amid the request for higher returns from portifolio investors stop rates increased marginally for most maturities.

In particular, stop rates for 91-day and 364-day rose to 9.75% (from 9.74%) and 11.18% (from 11.14%) respectively. However, stop rate for 182-day moderated to 10.60% (from 10.75%).

The matured t-bills worth N223.23 billion, the N88.68 billion matured OMO bills as well as the effect of the federally distributed revenue of N762.50 billion surpassed the auctioned treasury bills worth N223.23 billion.

Hence, the net inflows resulted in financial system liquidity ease and a resultant reduction in interbank offered rates for most tenor buckets: NIBOR for overnight funds, 3 months and 6 months tenure buckets fell to 6.75% (from 21.05%), 11.27% (from 11.96%) and 12.38% (from 12.71%) respectively. However, NIBOR for 1 month tenure bucket increased to 10.86% (from 10.81%).

Elsewhere, NITTY fell for most maturities tracked amid sustained demand pressure – yields on 3 months, 6 months and 12 months maturities dipped to 10.08% (from 10.58%), 11.09% (from 11.43%) and 11.99% (from 12.05%) respectively; however, NITTY for 1 month rose to 9.72% (from 9.04%) respectively.

In the new week, T-bills worth N83.37 billion will mature via the secondary market; hence, we expect interbank interest rates to moderate further amid anticipated ease in financial system liquidity.

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