The T-bills Market traded on a slightly bullish note, with demand skewed to the shorter end of the curve, as system liquidity remained significantly buoyant following inflows from N300bn bond maturity.
The Central Bank of Nigeria, CBN, raised the total amount on offer of N49.60bn at its PMA on Wednesday, May 30, which was moderately over-subscribed (N103.40bn), mostly from non-competitive bidders.
The market expects a slight uptick in yields tomorrow, as we expect the CBN to conduct another OMO auction due to c.N250bn inflows from Maturing OMO bills and Net PMA repayments.
The OBB and OVN rates crashed further to 1.75% and 2.50% respectively, as system liquidity is estimated to have increased significantly to c.N600bn positive, following inflows from today’s bond maturity. We expect rates to tick slightly higher tomorrow, as the CBN is expected to intervene in the market via an OMO auction sale.
The Interbank rate remained stable at its previous rate of N305.95/$, even as the CBN’s external reserves maintained a steady plunge, down to $47.65bn following continued intervention by the CBN in the various market segments.
Closing Rates in the I&E FX Window as published by the FMDQ has depreciated to a 10-month high of N362.02/$, as the market has remained net short of dollars in the past two weeks.
Rates in the Cash and Transfer Market has however inched higher by N1.00 and N0.50 to N362.50/$ and N366.00/$ respectively. This is following increased interventions by the CBN in the retail segment of the market.
The Sovereigns bond lost some ground gained in previous sessions, as investors sold off slightly especially on the longer end the curve. The heaviest loser was the 2047s which is down by c.1.30pt to 99.70 as at last trade.
