Stop Rates Settle Well Below 1% across All Maturities Issued…


In line with our expectations, CBN refinanced N154.35 billion worth of T-bills via the primary market at lower stop rates which settled below 1% for all maturities – reflective of the high level
of liquidity in the system that continued to chase short-term government securities.

Specifically, stop rates for 91-day, 182-day and 364-day bills crashed to 0.34% (from 1.00%), 0.50% (from 1.00%) and 0.98% (from 2.00%) respectively.

Given the N336.08 billion matured bills via Open Market Operations (OMO), we saw a boost in the financial system liquidity and a resultant drop in NIBOR for all tenor buckets.

NIBOR for overnight funds crashed to 1.40% (from 13.00%).

Also, NIBOR for 1 month, 3 months and 6 months plummeted to 0.94% (from 1.70%), 0.95% (from 1.91%) and 1.47% (from 1.87%) respectively.

Elsewhere, NITTY further moved southward for all maturities tracked amid sustained demand pressure.

Specifically, yields for 1 month, 3 months, 6 months and 12 months maturities moderated to 0.22% (from 0.40 %), 0.25% (from 0.49%), 0.29% (from 0.58%) and 0.62% (from 1.10%) respectively.

In the new week, treasury bills worth N224.45 billion will mature via OMO; hence, we expect interbank rates to further moderate amid anticipated boost in financial system liquidity.

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