CBN Forced to Increase Stop Rate for 364-day Bill amid High Investors’ Bids…

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In the just concluded week, CBN allotted T-bills worth N57.54 billion to partly refinance the N77.62 billion worth of matured treasury bills.

Specifically, the 364-day bill was issued at a higher rate as investors bids were high.

Hence, stop rate for 364-day bill increased to 5.50% from (5.00%).

There was marginal rise in stop rate for 91-Day bill to 2.50% from 2.49% while the stop rate for 182-Day bill fell marginally to 3.44% from 3.45%.

In tandem with the increase in 364-day bill rate, yields in the secondary market turned northwards for all maturities tracked.

NITTY for 1 month 3 months, 6 months and 12 months maturities increased to 2.94% (from 2.83%), 3.45% (from 3.30%), 4.46% (from 4.23%) and 5.70% (from 5.49%) respectively.

Meanwhile, NIBOR moved in different directions across tenor buckets tracked amid a net inflow of N39.50 billion as CBN only partly filled investors orders. Specifically, NIBOR for Overnight rate and 1 month tenor buckets moderated to 14.00% (from 14.50%) and 10.13% (from 10.15%) respectively.

However, 3 months and 6 months tenor buckets rose to 10.95% (from 10.53%) and 10.98% (from 10.95%) respectively.

In the new week, we expect activity in the money market to be slightly bullish as the market expects liquidity boost from the maturing N88.41 billion worth of OMO bills.