T-bill Yields Stay Flat as CBN resumes OMO


Monday, March 05, 2017 10:10 PM /Zedcrest Capital

***CBN Awaits Senate’s Clearance for MPC Meeting***

Proshare Nigeria Pvt. Ltd.


The bond market maintained its flattish trend in today’s session with continued buy interests on the long end (2037s) offset by some sell on the 2026 bond. Yields consequently inched higher by c.1bp on average. We expect another quiet trading session tomorrow, but with slight decline in yields due to expectations of continued interests on the long end.

Proshare Nigeria Pvt. Ltd.


Treasury Bills

The T-bills market also traded flat in today’s session, as the CBN resumed its OMO interventions with c.N693m 94-days and N89.25bn 227-days bill sold at 12.60% and 14.40% respectively. We however witnessed slight demand for some short tenured maturities as system liquidity remained positive at c.N100bn despite the OMO sales. We also witnessed slight compression on the long end Jan-19 bills as offers remain very thin relative to demand for them. We expect yields to inch slightly higher tomorrow, as the CBN is expected to continue with its OMO interventions, further tightening liquidity in the market.

Proshare Nigeria Pvt. Ltd.


Money Market

The OBB and OVN rates inched higher to close at 11.67% and 12.67%, as the CBN mopped up c.N90bn of system liquidity via an OMO T-bill sale. We expect rates to inch further upwards tomorrow, due to expectations of another OMO auction by the CBN.

Proshare Nigeria Pvt. Ltd.



FX Market

The CBN Official spot rate remained stable at its previous rate of N305.85/$. Its external reserves is also recorded to have improved by 1.65% to $42.76bn as of 2 March.

The spot rate in the Investors and Exporters’ FX Window depreciated marginally by 0.003% to close at N360.10/$ from N360.09/$ in the previous session.

Rates in the Unofficial market also depreciated by 0.03% to N361.00/$ from its previous rate of N360.90/$.

Proshare Nigeria Pvt. Ltd.


Information on all Nigerian bonds are available here

 Proshare Nigeria Pvt. Ltd.


Related News

1.      Tighter System Liquidity Expected to Bolster Yields

2.      An Investment Opportunity in the March 2018 FGN Savings Bond

3.      CBN Calms Market with c.N277bn OMO Sales

4.      PMA Rates Clear lower as DMO Unexpectedly Cuts offer Size in half

5.      VFD Group Achieves 175% Subscription on Debt Note Offer

6.      CBN Moderates System Liquidity with c.N250bn OMO Sales ahead of T-bills PMA

7.      Funding Rates decline on FAAC Expectations

8.      Robust System Liquidity to Drive Buying Interest as PMA holds on Wednesday

9.      Summary of Nigeria''s USD2.5 Billion Eurobonds Priced in February 2018

10.  Bond yields close positive on renewed local interest

11.  A little Breathing Space for the DMO

12.  CBN Resumes OMO to offset Inflows from Maturing Bills

13.  Summary of FGN Bond Auction Results for February 2018

14.  DMO Sells N52bn of New-10 Year Bond at 13.98% Marginal Rate

15.  T-bill Yields Decline as CBN Maintains Hold on OMO


Related News