SAT MAY 18 2024-theGBJournal| Interbank market liquidity remained in the negative territory for the most part of the week following the bonds auction settlement debit amidst other bank obligations.
Consequently, the Open Buy Back rate (OBB) rose by 196 bps WoW to end at 29.96%, while the Overnight rate (O/N) rose by 205 bps WoW, concluding at 30.68%.
Trading in the Treasury bills secondary market closed on a bearish note this week driven by sell pressures on OMO bills amid demand for short and long-dated T-bills.
As a result, the average yield across all instruments expanded by 6bps to 21.8%.
Across the market segments, the average yield at the NTB segment contracted by 29bps to 22.2% but advanced by 93bps to 20.9% in the OMO segment.
Given that the system is expected to be awash with liquidity next week, sustained demand for Treasury bills in the space is envisaged.
Sequentially, we expect yields to trend lower in the NTB secondary market. In addition, the Central Bank of Nigeria (CBN) is scheduled to hold an NTB PMA on Wednesday (22 May) where it will roll over N508.98 billion worth of maturities.
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