In the just-concluded week, CBN refinanced N161.87 billion of T-bills that matured via the primary market at lower rates for most maturities as investors continued to demand short-term government debt.
Specifically, stop rates for 182-day and 364-day bills moderated to 5.00% (from 6.00%) and 9.49% (from 10.00%), respectively.
However, the yield on 91-day bills rose to 2.66% (from 1.40%).
Overall, demand improved from the last auction, as implied by a bid-to-cover ratio of 6.28x, as total subscriptions rose to 1.03 trillion (from 0.91 trillion at the last auction).
Elsewhere, Nigerian interbank Treasury bills’ true yields rose in the secondary markets.
NITTY for 1 month, 3 months, 6 months, and 12 months rose w- o-w to 3.62% (from 2.8%), 4.7% (from 3.55%), 6.79% (from 4.35%), and 9.87% (from 5.87%), respectively.
Meanwhile,despitetherelativelylowvalueofmatured
OMO bills, NIBOR for overnight funds, 1 month, 3
months, and 6 months dropped to 11.11% (from
11.63%), 11.23% (from 11.38%), 11.98% (from 12.00%), and 12.95% (from 13.38%), respectively.
In the coming week, we anticipate bearish money market activity as the financial system’s liquidity may b e low due to the limited maturing bills…
