NITTY Rises for all Maturities as Stop Rate for 364-day Approaches 10%…


In the just concluded week, CBN alloted more T-bills (worth N129.46 billion) than the matured T-bills worth N88.45 billion in the primary market.

In line with our expectation, stop rates for 91-day and 182-day bills remained unchanged at 2.00% and 3.50% respectively; however, stop rate for 364-day bill further rose to 9.75% (from 9.00%) – as CBN sustained redirection of fund outflow to the longest maturity.

Amid sustained rise in 364-
day bill rate, NITTY rose for all maturities tracked; specifically, 1 month, 3 months, 6 months and 12 months maturities climbed to 2.09% (from 1.99%), 2.78% (from 2.62%), 4.29% (from 3.89%) and 8.81% (from 8.48%) respectively as traders demanded for higher yield.

Also, CBN sold a total of N20.00 billion at the OMO auction to partly drain sytem liquidity as OMO bills worth N40.00 billion matured.

Despite the net inflows worth N20.00 billion, NIBOR rose for all tenor buckets.

Overnight funds, NIBOR for 1 month, 3 months and 6 months tenor buckets jumped to 21.17% (from 14.83%), 12.57% (from 7.32%), 13.87% (from 8.58%) and 15.25% (from 9.03%) respectively.

In the new week, treasury bills worth N20 billion will mature via OMO; hence, we expect interbank rates to moderate amid financial system liquidity ease.