Treasury bills market traded on a slightly bullish note with slight demand witnessed from clients in absence of an OMO auction by the Central Bank of Nigeria, CBN.
Consequently, yields shrunk slightly by c.5bps on average. Yields are expected to remain relatively stable o Thursday, June 7, on the back of the robust system liquidity and expected OMO maturities.
Market players would however begin to price in anticipated funding for a likely OMO Auction Thursday, and retail FX bids on Friday.
This is expected to place slight pressure on yields in the coming days to the weekend.
The OBB and OVN rates remained relatively stable at 3.50% and 4.00% respectively. This was as system liquidity remained significantly buoyant at c.N400bn positive.
We expect rates to remain stable tomorrow, as there are no significant funding pressures expected. This is however barring an OMO auction sale by the CBN.