In the just concluded week, CBN refinanced
N90.94 billion T-bills which matured via Primary market at lower rates for most maturities as investors parked their funds in short term government debt instruments in line with our expectations; stop rate for the 91-day bills fell to 2.00% (from 2.45%) while the 182-day bills moderated to 2.20% (from 2.72%); however, the
364-day bills’ stop rate was flat at 4.02%.
Given the ease in financial system liquidity NIBOR moderated for all tenor buckets tracked: NIBOR for overnight funds, 1 month, 3 months and 6 months tenor buckets decreased to 12.58% (from 17.50%), 5.27% (from 8.23%), 6.18% (from 9.09%) and 6.06% (from 9.66%) respectively.
Meanwhile, NITTY declined for most maturities tracked in tandem with the stop rates; hence, yields on 1 month, 3 months and 6 months maturities moderated to 2.02% (from 2.28%), 2.44% (from 2.81%) and 2.38% (from 2.51%) respectively. However, yield on 12 months maturity rose to 3.64% (from 3.54%).
In the new week, T-bills worth N367.44 billion will mature via the primary market which will exceed T-bills worth N14.61 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N2.00 billion, 182-day bills worth N2.00 billion and 364-day bills worth N10.61billion.
Hence, we expect NIBOR along with the stop rates of the issuances to decline amid financial system liquidity ease.