Activities at the treasury bills market remained sketchy at the close of last week as the Central Bank of Nigeria, CBN, failed to conduct the sale of instrument, thus disappointing investors that anticipated the sale of the instrument via the Open Market Operations, OMO.
Treasury bills worth N380 billion matured at the market. At the close of transactions on Thursday, the treasury bills market traded on a relatively flat note, with yields inching slightly higher by 0.06 percent on average.
“This came as market players were looking to preserve some liquidity in anticipation of funding for a retail SMIS by the CBN [on Friday],” analysts at Zedcrest Research said.
Yields are expected to remain slightly pressured due to the anticipated foreign exchange (forex) funding.
It is anticipated that the absence of OMO sales yesterday may fuel some client demand in absence of an OMO T-bill auction today.
Meanwhile, the money market rates broadly slumped on Thursday as system liquidity was significantly bolstered by inflows from OMO T-bill maturities and Net PMA repayments of about N400 billion.
While the Open Buy Back (OBB) rate dropped to 3 percent yesterday from 12.50 percent recorded in the previous day, the Overnight (OVN) rate fell to 3.75 percent from 14.25 percent.
The rates are expected to trend higher today as a result of the anticipated funding for retail forex sales by the apex bank.