By Dipo Olowookere
The treasury bills market was relatively calm on Wednesday as investors eye superior yields on the OMO instruments expected to be auctioned on Thursday by the Central Bank of Nigeria (CBN), Lagos-based investment company, Zedcrest Research said.
With the OMO maturity of N375.98 billion today, the apex bank is expected to float an OMO to control money supply in line with their mandate.
Consequently, the market is anticipated to be bearish during the trading day as traders position for the OMO auction.
Meanwhile, interest rates dropped yesterday by one percent to close at 3.83 percent and 4.58 percent for the Open Buy Back (OBB) and Overnight (OVN) rates respectively due to the robust system liquidity, currently at N485 billion.
OMO T-bills maturities of N375.98 billion and retail forex bids refund will prompt the CBN to float an OMO auction today to mop up excess funds from the banking system.
Funding rates are consequently expected to move in line with the level of liquidity in the money market.
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