The overnight lending rate stretched 279 bps to 5.00%, as the Central Bank of Nigeria, CBN, mopped up Thursday, May 3 inflows of OMO worth N186.68 billion and treasury bills worth N190.84 billion via Open Market Operation auction.
The apex bank sold a total of NGN600.00 billion — NGN175.49 billion of the 105DTM and NGN424.51 billion of the 245DTM — worth of bills at respective stop rates of 11.00% and 12.10%.
Sentiments were a bit bearish in the NTB secondary market, following announcement of the OMO auction.
AS a result, average yield surged by 1 bp to 11.17%. Selloffs of the 105DTM (+44 bps) and 273DTM (+41 bps) bills led to yield expansion at the mid (+6 bps) and long (+3 bps) ends of the curve. Conversely, yield at the short (-6 bps) segment contracted on the back of demand for the 84DTM (-87 bps) bill.
Bearish sentiments overtook the bond market, as yield leaped by 7 bps on average, to 12.74%. There were sell pressures at the short (+6 bps), mid (+10 bps), and long (+6 bps) ends of the curve, with the JUN-2019 (+24 bps), JAN-2026 (+22 bps), and JUL-2030 (+15 bps) bonds recording the largest expansions, respectively.
