Expected liquidity ease to moderate interbank rates

Expectations are high that there will be liquidity ease in the finanical system with resultant moderation in interbank rates.

This is because Treasury bills worth N552.07 billion will mature via the primary and secondary markets which will more than offset T-bills worth N128.24 billion to be auctioned by the Central Bamk of Nigeria (CBN) via the primary market; viz: 91-day bills worth N3.38 billion, 182-day bills worth N16.92 billion and 364-day bills worth N107.94 billion.

“We also expect stop rates to increase, especially for 364-day amid wider spread in yields between the primary and secondary markets,” dealers from Cowry Assets Management Limited wrote in a note to clients.

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Also, dealers from Afrinvest West Africa Limited said, “We envisage multiple OMOs in the coming week to further manage liquidity levels downwards as OMO maturities worth N552.0 billion are expected on the 15th of November 2018.”

In the same way, primary market auction will be held on the 12th of November, when the CBN will auction instruments worth N133.3 billion, while an equal amount will mature, Afrinvest stated in a note to clients.

Meanwhile, the Bond Market traded flat in Friday’s session, as market players wound up activities in what has been a characteristically weak trading week for bonds.

There are expectations that  weak trading sentiments will persist in the bonds space, due to a slowdown in local client demand in recent sessions.

“We are also wary of the recent bearish movements in oil prices which have now fallen by about 20 per cent from their highs in October,” one dealer said.