Categories: Treasure Bills

Stop Rates Moderate Further amid Sustained Demand Pressure…

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.

Naija247news Media, New York is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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