Stop Rates Moderate for All Maturities on Increasing Demand…


In the just concluded week, the CBN refinanced matured T-bills worth N58.49 billion via Primary market at lower rates for all maturities; stop rate for the 91-day bills fell to 1.93% (from 2.20%), the 182-day bills decreased to 2.74% (from 3.20%) and the 364-day bills fell to 4.00% (from 4.30%) respectively.

Coupled with the auctioned N173.35 billion OMO bills, total outflows
amounted to N231.84 billion.

On the flip side, N135.86 billion worth of treasury bills matured via OMO which, combined with the primary market maturities (N58.49 billion), resulted in total inflows worth N194.35 billion.

Hence, the net outflows worth N37.49 billion accounted for the financial system liquidity strain.

NIBOR rose for most tenor buckets tracked amid renewed financial liquidty strain: NIBOR for 1 month, 3 months and 6 months tenor buckets further increased to 11.14% (from 6.80%), 11.89% (from 6.79%) and 12.39% (from 7.91%) respectively.

However, NIBOR for overnight funds plunged to 3.20% (from 14.92%).

Meanwhile, NITTY moderated for most maturities tracked amid sustained buy pressure: yields on 1 month, 3 months and 6 months maturities fell to 2.01% (from 2.32%), 1.96% (from 2.19%) and 2.63% (from 3.25%) respectively.

However, yield on 12 months maturity rose to 3.81% (from 3.72%).

16-Apr-20 17-Apr-20 BDC Parallel Market
In the new week, we expect marginal depreciation of the Naira against the USD, especially at the I&E FX Window amid declining external reserves.

In the new week, treasury bills worth N267.67 billion will mature via OMO; hence, we expect interbank rates to moderate amid anticipated boost in financial system liquidity.

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