Money Market
Market liquidity opened the day with a credit balance of₦325.63; an increase from previous day’s levels.
Consequently, the OPR and O/N rates slightly declined to close the day at 10.00% and 10.38% respectively as market participants funded their obligations.
We expect the rates to increase slightly tomorrow as banks fund for the NTB auction.
Foreign Exchange
During today’s trading session, there was no significant improvement in liquidity at the IEFX market, as market players bid for funds to meet their FCY obligations were met with limited offers. Consequently , the Naira depreciated by ₦0.03 to close at $/₦445.83
The NAFEX lost 30 kobo to the Dollar today to close at$/₦444.50
We expect rates to trade at these levels closing the week
Treasury Bills
The Treasury Bills secondary market opened on a quiet note as the attention of market players shifted to the NTB auction conducted by the DMO. At the close of market, only a few trades were consummated and consequently, rates remained unchanged from opening levels.
At the NTB auction, the DMO offered a total of ₦54.36bn and sold ₦104.36bn across the standard tenors from a subscription of ₦728.57bn. Stop rates declined by (1bp↓) , (5bps↓) and (179bps↓) on the 91-day,182-day and 364-day tenors respectively. With the 91-day closing at 6.49% , the 182-day closing at 8.00% and 364-day bills closed at 13.05% from 14.84% at the previous auction. Tomorrow, we expect the market to trade with mixed sentiments as market players continue to trade cautiously.
Bond
The bond market opened the day on a very calm note as attention shifted towards the NTB auction. As market progressed, we saw improved offers across the medium tenored bonds with emphasis on the 2032 and 2037 bonds. Yields hovered around 15% and 16.02%respectively. Demand for the short-tenored bonds persisted but these barely traded due to weak supply of instruments. On the average, yields remained stable across the benchmark bonds.
We expect some bullish sentiment tomorrow due to the improved system liquidity in the market.
Sources: FMDQ, Access Bank Treasury Team, CBN, Bloomberg, Nairametrics, Reuters
