WeekAheadTBs: N30.00 billion treasury bills mature through OMO

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In the past week, the CBN sold more T-bills (worth N 109.41 billion) than matured T-bills worth N 37.82. billion naira in the primary market, with the stop rate moderating further at the long end of the curve given the high subscription. amount worth 556.16 billion naira.

In line with our expectations, the 365-day invoice stop rate fell to 8.67% (vs. 9.15%).

However, the stop rates for the 91-day and 182-day bills remained unchanged at 2.50% and 3.50% respectively.

In tandem with the falling stop
rates, NITTY declined for most maturities tracked due to demand pressure.

Notably, NITTY for 1 month, 3 month, 6 month and 12 month maturities moderated to 2.92% (instead of 3.12%), 3.98% (4.49%), 5, 33% (instead of 5.80%) and 8.90% (instead of 9.35%) respectively.

Elsewhere, the CBN issued a total of N20.00 billion to partially drain system liquidity as OMO bills worth N20.00 billion matured. Nonetheless, NIBOR increased for most tenor buckets.

NIBOR for 1 month, 3 months and 6 months increased to 11.98% (vs 10.84%), 12.94% (vs 12.05%) and 14.32% (vs 13.38%) respectively .

However, the overnight funds rate collapsed to 5.47% (from 20.06%).

In the new week, treasury bills valued at N30.00 billion will mature through OMO; therefore, we expect interbank rates to move in mixed directions amid a marginal influx of good maturities.

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