Stop Rates Moderate for Most Maturities on Sustained Demand Pressure…

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In the just concluded week, CBN refinanced
N56.78 billion T-bills which matured via the primary market at lower rates for most maturities as investors continued to demand for short-term government debt despite rates falling to ridiculous low levels.

Specifically, stop rates for 182-day and 364-day bills fell to 1.39% (from
1.50%) and 3.20% (from 3.40%) respectively.

However, yield on 91-day bills was unchanged at 1.20%.

An additional N87.96 billion worth of T-bills matured via OMO, which less N45.36 billion in OMO auctioned bills, resulted in a total net inflow of N42.60 billion.

Given the financial system liquidity boost NIBOR for 3 months and 6 months fell to 4.29% (from 4.44%) and 4.44% (from 4.69%) respectively.

However, overnight funds and 1 month rose to 19.33% (from 8.0%) and 4.91% (from 4.49%) respectively.

Meanwhile, NITTY moderated for all maturities tracked in tandem with falling stop rates: yields on 1 month, 3 months, 6 months and 12 months maturities moderated to 1.02% (from 1.05%), 1.19% (from 1.30%), 1.45% (from 1.55%) and 3.01% (from 3.10%) respectively.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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