Stop Rates Moderate Further on Increasing Investor Demand for T-Bills…


In line with our expectations, CBN refinanced N107.05 billion T-bills which matured via Primary market at lower rates for all maturities amid increasing investors’ demand for short term government debt instruments: stop rate for the 91-day bills fell to 1.30% (from 1.79%) while that of the 182-day bills moderated to 1.80% (from 1.91%) and the 364-day bills decreased to 3.35% (from 3.39%).

Nevertheless, with an addition inflow in matured OMO bills worth N69.55 billion, we saw a boost in the financial system liquidity. Hence, NIBOR moderated for most tenor buckets tracked.

Specifically, NIBOR for 1 month, 3 months and 6 months tenor buckets moderated to 5.21% (from 5.35%), 5.51% (from 5.73%) and 5.27% (from 6.24%) respectively.

However, NIBOR for overnight funds spiked to 23.19% (from 14.25%).

Meanwhile, NITTY moved southwards for all maturities tracked in tandem with stop rates in the primary market; hence, yields on 1 month, 3 months, 6 months and 12 months maturities moderated to 1.52% (from 1.58%), 1.42% (from 1.72%), 1.63% (from 2.10%) and 3.02% (from 3.20%) respectively.

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