By Modupe Gbadeyanka
The treasury bills space was bullish on the first trading day of the week amid expectations of buoyant system liquidity this week.
At the market on Monday, there were increased activities with demand witnessed on the mid-end of the curve.
At the close of business, the treasury bills yields depreciated slightly by 0.08 percent to settle at 11.95 percent.
According to analysts at Zedcrest Research, the market is expected to remain bullish this week as N324 billion worth of OMO T-bills mature on Thursday.
Also, on Wednesday, there would be the sale of treasury bills via the primary market auction (PMA) with N207 billion worth of the government instrument to be rolled over on that day.
“Expectations remain for stable or lower stop rates at the auction as the DMO continues its strategy to refinance local debt at lower costs with repayments from proceeds of the Eurobond issued earlier this year,” Zedcrest Research said.
Meanwhile, Business Post reports that the money market rates on Monday recorded a 2.63 percent increase.
While the Open Buy Back (OBB) rate went up by 2.59 percent to close at 9.42 points from 6.83 points, the Overnight (OVN) rate surged by 2.67 percent to finish at 9.92 percent from 7.25 percent.
The rise recorded by the money market rates came off the back of outflows via the CBN’s SMIS auction conducted at the close of the previous week.
System liquidity is consequently estimated to close be lower at around N188.04 billion positive.
“Rates are expected to remain in single digit territory, as funding pressures on market players reduce as well as liquidity expected later in the week from OMO maturities and expected FAAC payments,” Zedcrest Research stated.
