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


In the just concluded week, CBN repayed matured T-bills worth N25.36 billion via OMO.
There was liquidity ease in the financial system as the standing deposit facility (SDF) stood at N169.12trillion, outweighing the standing lending facility (SLF) of only N6.78 billion.

Amid financial system liquidity ease, NIBOR for overnight funds dropped to 2.83% (from 23.19%).

However, NIBOR rose for 1 month, 3 months and 6 months tenor buckets increased to 6.05% (from 5.35%), 6.14% (from 5.51%) and 5.88% (from 5.27%) respectively.

Meanwhile, NITTY moderated further for most maturities tracked amid demand pressure; hence, yields on 1 month, 3 months and 12 months maturities fell to 1.19% (from 1.52%), 1.27% (from 1.42%) and 2.99% (from 3.02%) respectively.

However, yield on 6 months rose to 1.65% (from 1.63%).
In the new week, T-bills worth N265.95 billion will mature via the primary market which will match T-bills worth
N265.95 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N49.84 billion, 182-day
bills worth N54.59 billion and 364-day bills worth N161.52 billion.

Hence, we expect the stop rates of the issuances to decline amid demand pressure.

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