OMO maturities brought in a total of N37.05 billion, which increased liquidity and lessened funding strain. As a result, the money market’s short-term benchmark interest rate responded favorably to the financial system’s robust improvement in liquidity. As a result, funding rates cleared below 29%, the lowest level since the monetary policy rate adjustment.
To settle at 27.94% and 28.50%, respectively, interbank rates, the open repo rate (OPR), and the overnight lending rate (OVN) all saw decreases of 1.24% and 1.32%. Investor interest in Treasury bills increased in part due to the positive effects of the improving circumstances.
Due to buying sentiment, the average yield on Nigerian Treasury bills pared by a basis point to 21.7%, according to investment firm, Cordros Capital Limited.
Across the curve, the average yield decreased at the short (-1 bp), mid (-1 bp), and long (-2 bp) segments. Traders relate the yield contraction to bargain hunting in the 79-day to maturity bills whose yield dipped by -1 bp.
Also, investors increased their appetites for 170-day to maturity bills, causing its yield to slide by -1 bp. Demand for 324- days to maturity also dragged its yield lower by 2 bps.
Likewise, the average yield pared by 1 bp to 21.4% in the OMO bills segment in the secondary market on Wednesday after an OMO auction conducted by the Central Bank.
