Overnight Rate Falls to 13.58% Amid Inflows from Retail FX Refunds

By Modupe Gbadeyanka

The money market closed mixed yesterday as investors continue to tread cautiously, watching keenly on what government instrument to embrace.

The overnight rate dropped at the close of business yesterday, finishing at 13.58 percent from 35.33 percent the previous day.

In addition, the open buy back (OBB) rate also fell on Tuesday to 12.67 percent from 32.50 percent on Monday.

Business Post reports that the decline in the rates was due to inflows from retail forex refunds by the Central Bank of Nigeria (CBN).

It was learnt that the treasury bills market was bearish on Tuesday, though average yields increased by 16 basis points to 17.88 percent.

At the close of transactions, the apex bank successfully sold a total of N24.32 billion worth of T-bills at the open market operations (OMO).

A breakdown of the sales showed that the central bank traded N13.76 billion worth of the 93-day bill at 15.80 percent and N10.56 billion worth of the 191-day instrument at 17.55 percent.

Today, the apex bank will conduct a primary auction of treasury bills worth N117.2 billion and investors are gearing up for it.