23 April 2019: Yesterday, the CBN conducted an OMO auction – its first in twelve sessions – selling N167 billion amidst a N200 billion offer across the 93DTM, 184DTM and 359DTM bills at stop rates of 11.8000%, 12.9000% and 13.0290% (Effective yield: 12.17%, 13.80%, 14.94%) – slightly lower than previous auction levels. Meanwhile, the Interbank Call rate advanced 743bps d/d to settle at 17.29%.

Despite the liquidity mop-up, trading across the secondary T-bills market stayed positive, with buy interest observed across the space and yields declining 6bps on average. Similarly, trading in the bond space was mostly positive, driven by sustained demand. Overall, average yields on benchmark bonds declined 3bps.

Market Outlook

Analysts expect continued demand in the bond market driven by persistent investor interest. Meanwhile, analysts anticipate a mixed trading session in the T-bills space as market reacts to the auction stop rates.

Reporting for EasyKobo on Tuesday , 23 April 2019 in Lagos, Nigeria

Source: Vetiva Capital Management Limited