By Cowry Asset
In the week under review, CBN sold Treasury Bills (T-Bills) worth N192.60 billion via the Open Market Operations (OMO).
The outflows were offset by inflows worth N181.01 billion in matured 297-day bills.
In line with our expectations, NIBOR moderated for most tenor buckets: overnight funds rate, NIBOR for 1 month tenor and 3 months buckets fell w-o-w to 8.5% (from 40.18%), 19.13% (from 19.98%) and 20.63% (from 20.85%) respectively.
However, NIBOR for 6 months tenor bucket increased to 22.70% (from 22.69%). Elsewhere, NITTY moved in mixed directions: yields on the 1 month and 3 months maturities moderated to 16.78% (from 18.78%) and 17.09% (from 18.17%) respectively; however, 6 months and 12 months maturities increased w-o-w to 19.23% (from 18.81%) and 18.05% (from 17.91%) respectively.
This week, CBN will auction treasury bills worth N119.94 billion, viz: 91-day bills worth N32.44 billion, 182-day bills worth N22.82 billion, and 364-day bills worth N64.68 billion respectively.
We expect a moderation in stop rates in line with declining inflationary trend and improving economic outlook.
The auctions will be more than offset by T-bill maturities worth N208.57 billion via OMO. Hence, we expect boost in financial system liquidity and resultant moderation in interbank rates.
Adedapo Adesanya 
Modupe Gbadeyanka