Interbank: Naira Remains Stable At N305.90/$

The Naira remained stable Tuesday, at the inter-bank market trading at N305.90 to the green back.
But the bond market remained bullish, riding on the back of robust demand from local investors.
However, yields moved southward across FGN bonds mostly on the 2034 ,2027 and 2028 maturities.
We expect investors to be on the side line in the coming days as market players expect to maintain a relatively risk-off sentiment in anticipation of hike in the U.S FED fund rates by the FOMC scheduled for tomorrow.

Treasury bills
The market experienced few trades on the buy side June, September and Dec 2018 maturities. We expect the same sentiment to persist at tomorrow trading session until the outcome of FOMC meeting. We also expect players to have preference for the primary market Auction, since its outcome will influence market activities and behaviour. Market participants speculate that rates will be higher and above previous PMA auction levels, due to high volume on offer at N181bn.

The OBB and Overnight rates rose by 4% to 15.17% and 16.50% as system liquidity gradually thin out.rln the absence of no major inflows, market is expected to remain at this levels until Omo maturities of N244bn hits the system on Thursday.
By Judy Idialu