Liquidity in the Nigerian money market is expected to increase as N1.07 trillion inflows from combination of Treasury Bills maturity, Open Market Operation ( OMO) and Primary Market Auction (PMA) hit the system this week.
A breakdown of the inflows show that N536.3 billion will come from Treasury Bills maturity, N356.5 billion from OMO and N179.8 billion from PMA.
The money market last week recorded total inflow of N347 billion from matured OMO bills. However, the Central Bank of Nigeria (CBN) auctioned and sold OMO bills to mop up N527 billion, which caused a spike in average money market rates by 2,011 basis points.
Treasury bills closed on a negative note. Yields across the curve increased marginally by 1 bps on the average to 13.40 percent from 13.39 percent the previous day, according to analysts at FSDH research, an arm of FSDH Merchant Bank Limited.
Yields on medium and long term maturities increased by 4bsp, while the yields on the short- term maturities declined by 4bsp.
