In the just concluded week, CBN sold T-bills worth N303.22 billion to completely mop up the same amount of matured treasury bills via the primary market at higher stop rates, reflective of the tight liquidity conditions.Thank you for reading this post, don't forget to subscribe!
Specifically, stop rates for 91-day, 182-day, and 364-day bills
climbed to 5.19% (from 5.00%), 8.00% (from 5.90%), and 13.97%
(from 9.80%), respectively.
Activities in the secondary market were largely bearish as traders
moved in the direction of the primary market.
Consequently, NITTY moved northward for all maturities tracked, as yields for 1-month, 3 months, 6 months, and 12 months maturities jumped to 3.79% (from 3.58%), 5.47% (from 5.17%), 7.93% (from 7.12%), and 11.87% (from 11.38%), respectively.
Given the thin liquidity conditions in the financial system coupled with muted OMO maturities, NIBOR trended higher further week-on-week for all maturities, despite a liquidity boost emanating towards the week’s end from FAAC inflows worth N966.11 billion.
Specifically, NIBOR rates for overnight funds, 1 month, 3 months, and 6 months climbed to 25.10%, 12.58%, 13.89%, and 14.55%, respectively, from their preceding levels of 21.83%,11.50%, 12.42%, and 13.08%.
In the new week, we expect activity in the money market to be bearish amid limited maturing Treasury and OMO bills…