Stop Rate for 364-day Bill Moderates to 13.05% amid Strong Investor Demand…

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In the just concluded week, CBN sold T-bills worth N104.36 billion, to mop up the matured N82.36 billion in bills (OMO and T-Bills).

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Notably, the stop rate for the 364-day bills fell to 13.05% (from 14.84%) given the almost 2x subscription level compared to a sale amount of N104.36 billion.

Similarly, the stop rates for 91-day and 182-day bills moderated to 6.49% (from 6.50%) and 8.00% (from 8.05%), respectively.

In line with the direction of rates in the primary market, NITTY for 1 month, 3 months, 6 months, and 12 months maturities fell to 6.99% (from 9.01%), 7.81% (from 8.63%), 9.84% (from 10.55%), and 13.66% (from 14.86%), respectively.

Meanwhile, in the OMO market, we saw N15 billion
worth of OMO bills mature without refinancing.

Given the new inflow, NIBOR closed southward (bullish) for most tenor buckets tracked.

Specifically, NIBOR for 1-month, 3-month, and 6-month tenor buckets declined, respectively, to 13.00% (from 13.50%), 13.50% (from 14.88%), and 14.25% (from 16.13%).

Overnight funds, on the other hand, increased to 15.50% (from 11.63%).

In the new week, T-bills worth N16.25 billion are expected to mature.

We expect activity in the money market to be slightly bearish amid the limited maturing T-bills…

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