Stop Rates Moderate Further to 1% for 91-day, 182-day Bills…


In line with our expectations, CBN allotted N124.87 billion worth of T-bills 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 crash to 1.00% (from 1.08%), 1.00% (from 1.49%) and 2.00% (from 2.80%) respectively.

Given that N370 billion matured via the Open Market Operation (OMO), we saw a boost in financial system liquidity and a resultant drop in NIBOR for Overnight funds to 1.25% (from 11.50%).

However, NIBOR for 1 month, 3 months and 6 months rose to 2.26% (from 1.90%), 2.70% (from 2.13%) and 3.14% (from 2.39%) respectively.

Elsewhere, NITTY moved southward for all maturities tracked in tandem with the stop rates.
Specifically, yields for 1 month, 3 months, 6 months and 12 months maturities moderated to 0.54% (from 0.83%), 0.57% (from 1.03%), 0.84% (from 1.34%) and 1.57% (from 2.05%) respectively.

In the new week, treasury bills worth N296.03 billion will mature via OMO; hence, we expect interbank rates to further moderate amid anticipated boost in financial system liquidity

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