After a brief holiday, Market was scantly traded on Wednesday as investors shifted demand to Treasury Bills primary market auction. Yields closed at 12% on the average.
Market was bullish, following the midweek’s primary market auction which was oversubscribed while some market players lost the bid.
Investors expect the Central Bank of Nigeria (CBN) to offer OMO auction Thursday following OMO maturities of N187bn and liquidity in the banking system. The auction stop-rates decreased lower by 100basis points to 10.00%,10.95%,11.15% from previous levels of 10.9%,12%,12.078% for 91,182 and 364 days.
We expect slight buying interests to be sustained tomorrow, with expectations of favorable client demand at the OMO auction.
The OBB and Overnight rates remained stable at 1.92% and 2.21% respectively, as system liquidity remained unchanged. Rates are likely to remain stable as no major inflow is anticipated in the system.
The Interbank rate remained stable at its previous rate of N305.70/$.