The treasury bills market flagged off the new week on a positive note as investors getting purchased mostly the medium tenured instruments. As such, the average yields dropped by 0.33 percent to 11.06 percent.
Overnight rate slumped slightly to 3.25 percent from 3.75 percent last Friday, while the open buy back (OBB) rate fell to 2.83 percent yesterday from 3 percent in the last session.
According to analysts at Zedcrest Research, the “market players shifted focus to medium tenured bills (Jul-Nov) with most traded closed to single digit levels at around the 11-19pct area.”
“We expect slight buying interests to persist due to the buoyant level of liquidity in the system,” Zedcrest Research said.
Meanwhile, the money market rates saw some level of stability, though system liquidity is however expected to decline slightly to around N400 billion positive following outflows for wholesale forex sales by the Central Bank of Nigeria (CBN).
“We however note that market players expect inflows from retail forex refunds and OMO T-bill repayments to further bolster system liquidity much later in the week, whilst they are expected to be moderated by outflows for OMO auction sales, retail SMIS and bond auction settlement,” the investment research firm said.
