Naira at interbank market remain stable

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Naira at the Interbank market remained stable at its previous rate of N305.95/Dollar on Thursday.

At the Investors &Exporters Foreign Exchange window, the Naira rate also remained stable at N360.94/Dollar but at the parallel market, the cash rate depreciated by N1.00 to N361.50/Dollar, while the transfer market rate remained stable at N364.00/Dollar.

The Bond market traded on a mixed note, with some demand on the shorter end  of the curve (2019s) offset by some sell on the longer end  (34s & 36s).

Yields consequently rose by two basis points avgerage, as market players remained relatively risk off especially on the longer tenured maturities.

However, the Treasury bills market traded on a relatively quiet note, with yields compressing slightly by five basis points on average.

This was as the CBN intervened in the market via a total Open Market Operation (OMO) sale of N190billion.

Analysts at Zedcrest Capital said, “This was however significantly lower than the total amount offered (N400billion) and the total amount that matured (N327billion).

“We expect yields to remain stable tomorrow, barring a significant liquidity Mop up via a further OMO sale by the CBN.

“The OBB and OVN rates remained relatively stable at three per cent and 3.58per cent respectively. This was as system liquidity remained significantly buoyant at N580billion long, following inflows from OMO T-bill maturities, which more than offset outflows from today’s OMO sale. We expect that the CBN may float another OMO tomorrow, to make up for the residual offered amounts.

“Auction demand if this happens is however expected to remain weak, as market players have shown stronger preference for liquidity in anticipation of funding for their retail FX bids tomorrow.”

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