In the just concluded week, CBN refinanced only N60 billion of the N341.10 billion treasury bills which matured via the Open Market Operation (OMO). Hence, the net inflow worth N281.10 billion resulted in a boost in financial system liquidity – given the absence of sales of money market instruments.
Thus, NIBOR for 1 month, 3 months and 6 months declined to 0.23% (from 0.25%), 0.27% (from 0.36%) and 0.33% (from 0.42%) respectively. However, NIBOR for overnight funds rose to 6.00% (from 1.04%).
Meanwhile, NITTY moved northwards for most maturities tracked as yields touched ridiculously low levels.
Yields for 1 month, 3 months, 6 months and 12 months maturities fell to 0.040% (from 0.010%), 0.05% (from 0.03%), 0.28% (from 0.02%) and 0.11% (from 0.09%) respectively.
In the new week, T-bills worth N445.04 billion will mature via the primary and secondary markets which will more than offset the T-bills worth N50.93 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N4.41 billion, 182-day bills worth N7.82 billion and 364-day bills worth N38.70 billion. We expect the stop rates of the issuances to be flattish as rates have dropped to a ridiculously low level.