Stop Rates Rises for Most Maturities Offered…

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In the just-concluded week, CBN sold T-bills worth N214.74 billion to mop up the matured N219.74 billion bills.

The hike in rates by CBN was in line with our expectations, hence the reason for the higher yield across all maturities tracked.

The stop rate for 91-Days, 182-Days, 365-Days
bills climbed to 5.50% (from 4.00%), 5.85% (from 5.00%), 10.00% (from 8.50%), respectively.

NITTY for 1 month, 3 months, 6 months, and 12 months grew in lockstep with rates, climbing to 6.99% (from 6.46%), 7.66% (from 7.23%), 9.00% (from 8.42%), and 8.99% (from 8.23%), respectively.

Elsewhere, given the strain on the financial system’s liquidity and in spite of the matured OMO bills worth N5.00 billion.

Hence, NIBOR rose for most tenor buckets: 1 month, 3 months, and 6 months jumped to 11.94% (from 10.45%), 13.46% (from 12.35%), and 13.32% (from 11.89%), respectively. The overnight rate, however, fell to 12.34% (from 12.40%).

In the new week, We anticipate bearish money market action as financial sector liquidity may come under increased strain due to the limited maturing treasury and OMO bills