The Central Bank of Nigeria, CBN, for the third consecutive trading session, refused to sell treasury bills through the Open Market Operations, OMO, despite interest shown by investors.
As a result, the Treasury bills market closed bullish on Tuesday with most demands observed on the short end of the curve (March–May maturities).
However, the average yields trended downwards by 0.15 percent and barring a resumption in OMO issuance, the yields are expected to continue to trend downward as market players anticipate inflows from N57 billion worth maturing OMO bills tomorrow.
Meanwhile, the money market rates slumped on Tuesday as there were no significant pressures on system liquidity currently estimated at N70 billion.
The overnight rate fell to 19.92 percent on Tuesday from 26.67 percent on Monday, while the Open Buy Back (OBB) rate dropped to 19.33 percent from 25.17 percent.