At the interbank market on Wednesday, rates dropped marginally to 1.75%, just as Overnight decreased fell to 2.33%, helped by the N500bn with improvement in system liquidity following coupon payments on the 2037 bond.
The market saw mild bullish sentiments with demand for long-term maturities. Players went for instruments such as: the FGN bond 2027s and 2030, causing a drop in yields. We expect mixed market on Thursday, as market players await the outcome of NTB result.
It is however expected, nonetheless that the outcome of the result will influence market behaviour.
The bulls dominated this segment of the market with liquidity in the system.
Yield consequently fell across tradable maturities to 12% levels on the average.
At Wednesday’s Primary Market Auction (PMA), it was oversubscription, especially on the 364- day instrument.
The market is likely to rebound on Thursday on the back of the anticipated OMO Auction.
We expect those who lost in the auction to purchase bills from the secondary market on Thursday.
By IDIALU ODEGUA JUDITH
Pix Credit: Afrinvest West Africa