By Modupe Gbadeyanka
The nation’s overnight lending rate moderated to 3.58 percent on Monday from 4.83 percent recorded at the close of transactions last Friday.
This was as system liquidity remained significantly robust following inflows from the Central Bank of Nigeria (CBN) in the previous session.
Also at the close of business yesterday, the Open Buy Back (OBB) rate went down to 3.08 percent from 4.08 percent in the last trading day.
According to analysts at Zedcrest Research, barring a significant liquidity mop up by the CBN, system liquidity which opened the week at N950 billion is expected to remain considerably robust for the most part of the week.
As a result, funding rates are consequently expected to remain stable at single digit levels, the investment firm stated.
Meanwhile, the treasury bills market was dominated by interests on the shorter end of the curve, mostly on the November maturities, due to the significantly buoyant level of liquidity in the system.
Market players were however slightly bearish on the longer end of the curve, due to expectations for continued OMO auctions at more attractive yield levels.
The market is expected to be relatively flat in the coming days, with some profit taking expected on the some of the shorter tenured bills which have been rallied to single digit levels.
Adedapo Adesanya