Stop Rates Rise Marginally; Overnight Funds Rate Moderate amid Liquidity Boost…


In the just concluded week, CBN sold N142.76 billion T-bills which outweighed matured treasury bills worth N33.84 billion via Primary market at higher rates for most maturities as bidders requested for higher rates ranging up to 12.80%; stop rate for the 91-day bills rose to 2.50% (from 1.85%) and the 182-day bills increased to 2.85% (from 2.49%); however, the 364-day bills’ stop rate was flat at 3.84%.

Also, N209.05 billion worth of treasury bills matured via OMO which, combined with the primary market maturities (N33.84 billion), resulted in total inflows worth N242.89 billion.

Hence, the net inflows worth N100.13 billion led to a boost in the financial system liquidity. NIBOR for overnight funds plunged to 3.56% (from 8.08%).

However, NIBOR for 1 month, 3 months and 6 months tenor buckets rose to 6.94% (from 6.01%), 7.02% (from 6.69%) and 7.54% (from 7.48%) respectively.

Meanwhile, NITTY rose for all maturities tracked in tandem with the rise in stop rates: yields on 1 month, 3 months, 6 months and 12 months maturities rose marginally to 1.94% (from 1.75%), 2.14% (from 2.03%), 2.55% (from 2.39%) and 3.53% (from 3.44%) respectively.

In the new week, we expect stability of the Naira against the USD, especially at the I&E FX Window amid rising external reserves.

In the new week, we expect NITTY to moderate as investors increase demand for fixed income securities given the marginal rise witnessed in the just concluded

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