By Modupe Gbadeyanka
The cost of funds depreciated on Tuesday as the average money market rate declined by 5.75 percent to close at 15.40 percent.
This followed the 6.50 percent and the 5.00 percent decline in the Open Buy Back (OBB) and Overnight (OVN) rates respectively.
Business Post reports that this was as the system liquidity went down broadly to N38 billion from N109 billion previously as a result of outflows for the Wholesale SMIS which was funded in the previous session.
According to analysts at Zedcrest Research, the rates are expected to remain elevated on Wednesday as there are no significant inflows expected.
Meanwhile, the treasury bills market reversed gains on Tuesday as a squeeze in system liquidity from the wholesale SMIS in the previous session took yields higher by 0.15 percent across the curve, with the most selloff seen on the shorter end of the curve.
The yields are anticipated to remain high today as market players look forward to a further OMO auction by the Central Bank of Nigeria (CBN) on Thursday to mop up inflows from N284 billion maturing OMO bills.
Dipo Olowookere 
Adedapo Adesanya