By Dipo Olowookere
The treasury market traded bullish on Tuesday to reverse the bearish mood recorded at the market the previous day.
Business Post reports that bargain hunting embarked upon yesterday by investors at the market subdued the selloffs of Monday.
At the close of transactions, the prevailing buying pressure compressed the average yields by 0.03 percent to 12.16 percent.
However, activities at the treasury market are expected to be muted on Wednesday as market participants focus on sale of the government securities via the primary market auction.
The Central Bank of Nigeria (CBN), which will conduct the exercise today, will offer N3.38 billion worth of 91-day bill, N10 billion worth of 182-day bills and N20 billion worth of 364-day bills to investors.
According to analysts at Zedcrest Research, the stop rates are expected to clear between 10.50-11 percent, 10.90-11.20 percent and 11.50-12.00 percent for the 91-, 182- and 364-day bills respectively.
Meanwhile, the average money market rates declined on Tuesday by 1.31 percent to settle at 10.78 percent in the absence of liquidity tightening activities by the CBN.
While the Open Buy Back (OBB) rate reduced to 10.38 percent from 11.45 percent, the overnight (OVN) rate declined to 11.17 percent from 12.42 percent.
However, the funding rates are expected to remain stable today as there is no anticipated significant pressure on system liquidity.
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