Stop Rates Fall Further for All Maturities…


Read audio

In the just concluded week, CBN allotted T-bills worth N220.53 billion to fully refinance the N198.34 billion worth of matured Treasury bills.

Notably, given the strong demand (bid-to- cover ratio of 4.73x), the stop rate for all of the maturities declined.

Specifically, 364-day bills fell further to 4.78% (from 7.30%). Also, 91- day bill and 182-day bill rates fell to 0.29% (from 2.00%) and 1.80% (from 4.33%), respectively.

In tandem with the mood in the primary market, despite the MPC raising the policy rate to 17.50% (from 16.50%), NITTY for all maturities tracked moderated.

Specifically, NITTY for 1 month, 3 months, 6 months, and 12 months maturities fell to 1.00% (from 1.79%), 1.93% (from 2.53%), 2.95% (from 3.50%), and 4.14% (from 6.05%), respectively.

Meanwhile, the OMO space was a bit busy as CBN auctioned N14 billion worth of bills, less than the matured OMO bills worth N40 billion.

Despite the N26 billion net inflow, NIBOR rose for most tenor buckets, while overnight funds declined to 10.88% (from 11.13%) and NIBOR for 1 month, 3 months, and 6 months climbed to 12.50% (from 12.13%), 13.00% (from 12.85%), and 13.81% (from 13.55%), respectively.

In We anticipate bearish money market activity in the coming week, as the financial system’s liquidity may be low due to the limited maturing bills.

Godwin Okafor
Godwin Okafor
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

Share post:




More like this

Nigeria’s President-Elect Tinubu Remains “Medicalized” In French Hospital

Multiple reports from French Hospital in London reveals that...

I Doesn’t See Myself Handing Over Presidency to Tinubu, Buhari Tells Close Associates

Nigerian President Muhammadu Buhari has reportedly told his close...

World Athletics bans “medically turned women’ athletes from track, tightens testosterone rules

Transgender women who "have gone through male puberty" will...

BREAKING: Nnamdi Kanu’s brother loses London court challenge against UK

Kanu's brother, Kingsley Kanu, brought a judicial review against Britain's Foreign Office over its alleged refusal to acknowledge that Nnamdi Kanu, who holds Nigerian and British citizenship, was the victim of extraordinary rendition from Kenya to Nigeria in June 2021.