Nigeria’s Central Bank 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 N221 billion to refinance the N15.78
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 4.79% from (4.00%) while the stop rate for 91-Day bill and 182-Day bill remain unchanged at 1.44%
and 3% respectively.

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

NIITTY for 1 month, 3 months and 12 months maturities increased to 2.93% (from 2.71%), 3.30% (from 3.14%), and 4.99% (from 4.83%) respectively. While NITTY for 6 months decreased to 3.80% (from 3.90%).

Meanwhile, NIBOR moved in different directions across tenor buckets tracked except Overnight tenor bucket which rose to 9.40% (from 6.00%), the 1 month, 3 months, and 6 month tenor buckets fell to 7.31% (from 9.60%) 8.11% (from 10.58%), and 8.49% (from 10.85%) 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 N20 billion worth of OMO bills.