Following inflows from OMO maturity of N65bn, money market rates eased slightly with O/N and OBB dropping 433bps and 450bps to berth at 11.67% and 10.67% respectively.
The Central Bank of Nigeria also sold N2.19b and N126.13bn worth of 189-day and 364-day bills at 17.95% and 18.55% stop rates respectively in its continued efforts at keeping tab on system liquidity in defense of the local currency.
We expect rates to inch up in subsequent sessions as system liquidity would remain constrain on CBN’s persistent OMO bill sales.
The bond market traded sideways today as movement in yields was mixed across tenors. On the long-dated tenors, sell pressure on 10yr benchmark bond saw yield on this instrument expanded by 4bps to 16.28% while yield on 7yr benchmark bond contracted by 5bps to 16.26%.
However, yield on the 5-year benchmark bond was however flat at 16.18%.
We expect activity in subsequent session to be influenced by liquidity levels, Invest Advocate reports.
