Liquidity In Money Market Up N450bn Last Week

Last week, there was a turnover of $1.29 billion in Investors’ and Exporters’ (I&E) window, which represents an increase from last week’s $1.17 billion.
Money market dealers expect that there will be an uptick in demand at this window this week, as corporates start to make dividend payments for the year 2017.
Overnight rates were depressed all through last week as the market was liquid most of the time. The interbank money market has been very liquid through the week as the Central Bank of Nigeria (CBN) has replaced their daily Open Market Operations (OMO) auctions with only one OMO auction on Thursday.
The money market closed N450 billion long on Friday with the month to date
Overnight rate below five per cent. The market is expected to stay liquid up until Thursday when there will be an OMO auction and it will tighten further when banks are debited for the retail SMIS auction on Friday.
The results of the April 13th retail auction were released on Friday evening, the Credit for the unsold portion is expected later in the week.
There will be a bond primary auction this week with N30 billion of a new 5-year bond as well as N30 billion each of the 7 and 10-year bonds( 2025s and 2028s) on offer.
(C) Citibank Nigeria

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