Interbank Interest Rates Move in Mixed Directions

In the just concluded week, CBN auctioned treasury bills via primary market, viz: 91-day bills worth N35 billion (Stop Rate, SR, rose to 13.5511% from 13.55%), 182-day bills worth N33.49 billion (SR rose to 17.2121% from 17.20%) and 364-day bills worth N166.403 billion (SR rose to 18.7411% from 18.69%). The outflow was equally offset by maturing treasury bills via primary market, viz: 91-day bills worth N35 billion, 182-day bills worth N33.49 billion and 364-day bills worth N166.403 billion. Consequently, interbank rates moved in mixed directions: NIBOR for 3 months and 6 months tenors fell week-on-week to 20.62% (from 20.93%) and 22.97% (from 23.28%) respectively; however, NIBOR for overnight funds and 1 month tenor rose to 15.88% (from 11.71%) and 16.73% (from 16.72%) respectively. Meanwhile, Nigerian Interbank Treasury Bills True Yields (NITTY) fell across most of the maturities amid buy pressure – yields on 3 months and 6 months maturities fell to 17.78% (from 19.03%) and 19.65% (from 20.21%) respectively. However, the yield on 1 month maturity rose to 14.82% (from 11.84%). This week, in absence of major inflows, we anticipate increase in interbank lending rates.