Stop Rates of Auctioned T-Bills Plunge Below 0.50% for all Maturities…

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In line with our expectations, CBN refinanced N167.81 billion worth of T-bills via the primary market at lower stop rates which settled well below 0.5% for all maturities – suggestive of the
increased 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 0.04% (from 0.34%), 0.15% (from 0.50%) and 0.30% (from 0.98%) respectively.

Given the N226.82 billion matured
bills as against the N70 billion auctioned 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 1.0% (from 1.25%).

Also, NIBOR for 1 month, 3 months and 6 months plummeted to 0.50% (from 1.12%), 0.93% (from 1.15%) and 1.71% (from 1.54%) respectively.

Elsewhere, NITTY further moved northward for most maturities tracked, especially yields for 1 month, 3 months and 6 months maturities which increased to 0.21% (from 0.19%), 0.49% (from 0.22%) and 0.38% (from 0.36%) respectively.

However, yield on 12 months maturity fell to 0.24% (from 0.41%). 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%

In the new week, treasury bills worth N281.45 billion will mature via OMO; hence, we expect interbank rates to further moderate amid anticipated boost in financial system liquidity.

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