Post Views: 51 The OBB and Overnight rates increased of the interbank market rose slightly higher to 3.00% and 3.83% respectively, due to N500bn outfl...
The OBB and Overnight rates increased of the interbank market rose slightly higher to 3.00% and 3.83% respectively, due to N500bn outflows from OMO auction sales on Thursday.
Rates hike is expected on Friday, April 13, 2018, due to anticipated funding for retail FX bids by banks.
The Interbank rate however remained stable at N305.55/$.
The Bond recorded a bullish sentiment with buy side concentrated on some on the run bonds for 2019, 2027 and 2020 maturities.
However, this is following the release of inflation figure by the National Bureau of Statistics (NBS) earlier in the day, showing that the Consumer Price Index or inflation dropped for the 14th consecutive month to 13.34% from 14.33% in February 2018. The inflation figure therefore moved further towards the single-digit benchmark.
The market closed at 13.55 levels on the average.
We expect a mixed sentiment tomorrow (Friday, April 13, 2108), as players take proactive positions.
CBN offered a total of N500bn of the 2-Aug 2018 and 13-Dec 2018 bill respectively today but sold only N500bn despite the high subscription from players.
The Stop rate were 12.20% ,13.99% for the 2-Aug 2018 and 13-Dec 2018. The bulls will persist tomorrow as players take strategic position for lost bids.
The Treasury bills market recorded mixed sentiments as profit takers purchased some short maturities to fund for their OMO bids.
By IDIALU ODEGUA JUDITH