Modupe Gbadeyanka
By Modupe Gbadeyanka
On Tuesday, yields of treasury bills slightly appreciated by 0.13 percent to settle at 13 percent on the average.
This was as the market traded bearish yesterday with some selloff, mostly on the shorter end of the curve (Jul – Nov) which rose by 0.30 percent on average.
According to analysts at Zedcrest Research, this followed a squeeze in system liquidity coming from the OMO and forex sale in the previous session.
“We expect yields to be relatively flat on [Wednesday] as market players await inflows from OMO maturities and possible FAAC payments later in the week to moderate funding pressures in the system,” experts at Zedcrest Research said.
Meanwhile, the money market rates appreciated yesterday by 0.20 percent with system liquidity (estimated at N200 billion positive) skewed towards a fewer number of banks.
Specifically, the Open Buy Back (OBB) rate jumped to 31.57 percent from 11.33 percent in the previous session, while the Overnight (OVN) rate increased to 38 percent from 12.83 percent.
The rates are expected to be relatively flat today, but to trend slightly lower in subsequent sessions due to expected inflows from FAAC and OMO maturities (Thursday/Friday).
