CBN To Offer N187bn At OMO Auction On Wednesday

It was a mixed market on Monday, notably on short and medium maturities for September and November maturities. We expect the Central Bank of Nigeria (CBN) to offer OMO auction on Wednesday or Thursday as a result of N187billion maturing bills on Thursday. A bullish market is expected as players take strategic position ahead of NTB Primary Market Auction (PMA) on Wednesday.
There will be an NTB Auction on Wednesday we expect CBN to offer a total of N95bn of the 91, 182 and 364day bills.

Bond Market
The market was relatively quiet as both foreign and local remain on the sideline. Average yields on the 5, 10 and 20year benchmark bond closed at 13 %and 12.98% levels respectively.

The OBB and Overnight rates dipped to 1.92% and 2.42% with improved liquidity with of N400bn positive. However, CBN’s intervention in the market was $210m as Interbank closed at N305.75/$. ln the near term, we expect market activities to be influenced by liquidity levels and offshore investment.