Overnight Rate Jumps by 14.58% as T-Bills Yields Add 0.09%
By Dipo Olowookere
The treasury bills space in Nigeria on Wednesday traded flat with the average yields slightly appreciating by 0.09 percent.
Business Post reports that the yields ended yesterday at 13.01 percent.
Yesterday, the treasury bills market remained constrained by the tight liquidity conditions in Naira market.
But the yields are expected to remain marginally down on Thursday as market players anticipate inflows from N183 billion OMO maturities.
Meanwhile, the average money market rate stood at 50.46 percent at the close of trading session on Wednesday.
The Open Buy Back (OBB) and the Overnight (OVN) rates appreciated broadly yesterday by 16.76 percent and 14.58 percent respectively.
Specifically, the OBB rate jumped to 48.33 percent from 31.57 percent, while the overnight rate grew to 52.58 percent from 38 percent in the previous trading day.
It was observed that the rates surged as system liquidity depressed significantly down to N60 billion from N200 billion in the previous session.
However, the rates are expected to drop today with infows from OMO maturities anticipated to moderate funding pressures in the system.