CBN Forced to Increase Stop Rate amid High Investors’ Bids….

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In the just concluded week, the CBN sold T-bills
worth N150.62 billion to mop up all matured
treasury bills, with stop rates rising for all tenor buckets.

Specifically, stop rates for 91-Day,182-Day and 365-Day bills rose to 3.50% (from 2.80%),
4.50% (from 4.10%) and 7.45% (from 7.00%)
respectively as investors bid higher in tandem with the increase in rates, while the yields in the secondary market turned northwards for all
maturities tracked.

the new week, we expect activity in the money market to be slightly bearish as the financial system liquidity may rather come in low given the limited maturing treasury and OMO bills…..

Also, NITTY for 1 month 3 months and 6 months maturities increased to 7.80% (from 6.32%), 8.25% (from 6.64%), 8.38% (from 7.31%) and 7.26% (from 7.20%) respectively.

Elsewhere, OMO bills worth N5 billion were repaid with no refinancing from the apex bank. Given the net inflows worth N5 billion, NIBOR for overnight, 1 month, 3 months and 6 months fell to 11.60% (from 14.93%), 10.06% (from 12.94%), 4.22% (from 10.50%) and 10.76% (from 12.59%) respectively.

In the new week, we expect activity in the money market to be slightly bearish as the financial system liquidity may rather come in low given the limited maturing treasury and OMO bills…..