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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.
