Overnight Rate Drops as T-Bills Market Trades Flat

By Dipo Olowookere

The money market rates declined on Thursday as the market experienced inflows of N90 billion in OMO maturities which helped offset OMO sales outflows of N57 billion by the Central Bank of Nigeria (CBN).

The overnight rate fell to 6.92 percent from 9 percent on Wednesday, while the Open Buy Back (OBB) rate went down to 6.67 percent from 8.67 percent.

With the anticipated funding for retail forex bids by banks today, the rates are expected to increase at the close of market on Friday.

Meanwhile, the treasury bills market traded on a relatively flat note yesterday, with a slight uptick of 0.03 percent in average yields.

This followed the continued OMO issuance by the CBN and anticipations of significant liquidity outflows for retail forex funding by banks.

The apex bank sold N57.08 billion OMO bills from the N100 billion worth of the 266-day bills offered for sale to investors.

However, despite offering N50 billion worth of the 105-day instrument to market players, no bid was received.