Nigeria Money Market: Review and Outlook

Must Read

- Advertisement -

For the month of Nov-19, overall system liquidity remained elevated, as the size of maturing funds – from Nigerian Treasury Bills (NTB), Open Market Operation (OMO) bills, FAAC allocation, and FX retail refunds – outweighed outflows from NTB, OMO, FX and Bond auctions. Also, with local individuals and corporates barred from participating at the primary and secondary OMO market, available outlets were limited. As such, O/N & OBB rates fell to an average of 4.1%, from 5.0% in Oct-19.

Nigeria Money Market: Review and Outlook - Brand Spur

In terms of primary market activities, the CBN only mopped up 49.4% (N767.2bn) of the N1.6tn OMO maturities that hit the system during the period. This was as maturities belonging to the class of unqualified investors were not rolled-over and frequency of OMO auction dropped to three (vs. six in Oct-19). As a result, heavy demand filtered into the NTB primary market, with stop rates crashing significantly to 6.5% on 91-day, 7.2% on 182-day and 8.4% on the 364-day. Also, the FMDQ successfully differentiated between OMO and NTB, which showed a bullish run in the secondary NTB market, as average yields declined to 7.3%, while OMO bills averaged 13.9%, vs 12.7% in Oct19 (OMO and NTB bills together).

Read Also:  The Most treacherous world Laptop Is Up Sale for $1.2 Million

Looking into Dec-19, we expect the direction of yields to remain largely dependent on the available liquidity in the system. Notably, with N776.3bn OMO maturities lined up in Dec-19 and bearing in mind the CBN ban on local corporates & individuals, we expect yields to moderate further, albeit at a slower rate as players look to other high-yielding naira assets (Bonds, Equities and Alternative Assets).

- Advertisement -

United Capital Plc Research

- Advertisement -
spot_imgspot_img

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Schneider Electric

Manliki Joins Schneider Electric As Marketing Communications & Digital Lead

Arafat O. Manliki, former digital marketing manager at MTN has ended his 14-year career journey to resume his new position as the marketing communications...
bitcoin Central Bank digital currency Naira Bitcoiners Bitcoin Touches $18K, Crypto Asset Looks to Smash All-Time High, ETH Price Could Spike 20x

Bitcoin and Nigeria

- Advertisement -
spot_imgspot_img

Latest News

Manliki Joins Schneider Electric As Marketing Communications & Digital Lead

Arafat O. Manliki, former digital marketing manager at MTN has ended his 14-year career journey to resume his new...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -spot_imgspot_img