Stop Rates Move in Mixed Directions; Overnight NIBOR Plunges on Liquidity Boost…

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In the just concluded week, CBN refinanced
matured T-bills worth N59.37 billion via Primary market at lower rates for most maturities: Stop rates for the 91-day bills and the 182-day bills fell to 2.45% (from 2.50%) and 2.72% (from 2.85%) respectively.

However, the 364-day bills rose to 4.02% (from 3.84%). N114 billion worth of T-bills was auctioned via OMO.

Meanwhile, N303.17 billion worth of treasury bills matured via OMO which, combined with the primary market maturities (N59.37 billion), resulted in total inflows worth N362.55 billion.

Hence, the net inflows worth N248.55 billion led to a boost in the financial system liquidity as NIBOR for overnight funds fell sharply to 3.50% (from 12.06%).

However, NIBOR for 1 month, 3 months and 6 months tenor buckets rose to 5.87% (from 5.68%), 6.12% (from 6.04%) and 6.99% (from 6.65%) respectively.

Meanwhile, NITTY moved northwards for all maturities tracked amid renewed bearish activity: yields on 1 month, 3 months, 6 months and 12 months maturities rose to 2.08% (from 2.05%), 2.26% (from 2.13%), 2.66% (from 2.59%) and 3.56% (from 3.49%) respectively.

In the new week, we expect the Naira to depreciate against the USD, especially at the I&E FX Window following recent decline in crude oil prices.

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