Money Market Rates Inch Higher as T-Bills Trade Flat

By Modupe Gbadeyanka

On Monday, the money market rates from to double digits at the close of business as market participants made provisions for the forex wholesale intervention by the Central Bank of Nigeria (CBN).

Specifically, the Open Buy Back (OBB) rate moved from 6.67 percent to 10.17 percent yesterday, while the Overnight (OVN) rate jumped to 10.83 percent from 7.33 percent.

The rise in these market rates followed a drop in system liquidity levels during trading yesterday.

“We expect rates to remain at these levels after the break, with some respite expected later via OMO maturities,” analysts at Zedcrest Research stated in the report.

Meanwhile, the treasury bills market traded flat across the curve on Monday in line with market expectations ahead of the Monetary Policy Committee (MPC) meeting starting on Wednesday in Abuja.

Yields are expected to trend upwards, due to reduced system liquidity levels and anticipation for renewed OMO supply later in the week.