Money and Fixed Income
Overnight rate expands on CBN’s OMO auction
Published
5 years agoon
Overnight rate expands on CBN’s OMO auction
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The overnight lending rate expanded by 275bps to 15.0%, following outflows for CBN’s weekly OMO auction.
The Nigerian Treasury Bill (NTB) secondary market was bullish, as the average yield contracted by 7bps to 4.4%.
Across the curve, the average yield was flat at the short end but contracted at the mid (-3bps) and long (-13bps) segments, following buying interests in the 154DTM (-5bps) and 350DTM (-117bps) instruments, respectively. Elsewhere, the OMO segment’s average expanded by 11bps to 7.0%.
Trading in the Treasury bond secondary market remained bearish, as the average yield expanded by 16bps to 11.1%.
Across the benchmark curve, average yield contracted at the short (-11bps) end, following demand for the JAN-2022 (-65bps) bond but expanded at the mid (+52bps) and long (+20bps) segments, following sell-offs of the MAR-2027 (+63bps) and APR-2049 (+70bps) bonds, respectively.
