Stop Rates Moderate Further amid Sustained Demand Pressure…

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In line with our expectation, CBN allotted
N133.97 billion worth of T-bills (which
outweighed the N113.79 bills that matured via the primary market) to investors at lower stop rates for all maturities – reflective of the high level of liquidity in the system that chased short-term government securities.

Specifically, stop rates for 91-day, 182-day and 364-day bills fell to 1.08% (from 1.09%), 1.49% (from 1.50%) and 2.80% (from 3.05%) respectively.

However, given the relatively lower rate in the secondary market, NITTY rose for most maturities tracked: yields on 1 month, 3 months and 6 months maturities increased to 0.83% (from 0.77%), 0.93% (from 0.91%) and 1.27% (from 1.13%) respectively.

On the flip side, 12 months maturity fell to 2.10% (from 2.47%).

Meanwhile, NIBOR for 1 month, 3 months and 6 months rose to 2.32% (from 1.62%), 2.45% (from 1.79%) and 2.89% (from 2.29%) respectively amid financial system liquidity strain.

However, NIBOR for Overnight funds fell sharply to 2.63% (from 16.70%).

In the new week, treasury bills worth N567.68 billion will mature via OMO; hence, we expect interbank rates to further moderate amid anticipated boost in financial system liquidity.

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