SAT, 30 APRIL, 2022-theGBJournal | At the money market, the overnight (OVN) rate oscillated in the double-digit region through the week, eventually rising by 683bps w/w to close at 12.5% on lower system liquidity.
The average liquidity level for the week settled at NGN19.03 billion (vs NGN78.37 billion in the previous week) as outflows for the FGN bond auction (NGN219.88 billion), Net NTB issuances (NGN9.08 billion) and FX auction offset inflows from FGN bond coupon payments (NGN160.32 billion).
In the coming week, inflows from FAAC allocations (NGN448.46 billion) and OMO maturities (NGN20.00 billion) are expected to hit the system. This should boost system liquidity towards the end of the week and result in the OVN rate trending southwards at the end of the week.
Trading in the Treasury bills secondary market turned bearish this week due to weak system liquidity and market participants preparing bids for the week’s NTB PMA.
Consequently, the average yield across all instruments expanded to 3.8% – the average yield at the OMO segment expanded by 21bps to 4.2% but contracted by 8bps to 3.7% at the NTB segment.
At this week’s NTB PMA, the CBN offered NGN120.97 billion – NGN2.68 billion of the 91-day, NGN2.02 billion of the 182-day, and NGN116.27 billion of the 364-day – in bills. Ultimately, the CBN allotted NGN130.05 billion – NGN2.22 billion of the 91-day, NGN8.23 billion of the 182-day and NGN119.61 billion of the 364-day bills – at respective stop rates of 1.74% (unchanged), 3.00% (unchanged) and 4.79% (previously 4.60%).
Twitter-@theGBJournal|Facebook-The Government and Business Journal|email: gbj@govbusinessjournal.ng|govandbusinessj@gmail.com
