Analysts expect the bullish trend to be sustained this week

In the money market, the open buyback (OBB) and overnight (ON) rates declined w-o-w due to changes in system liquidity attributable to OMO and primary market repayments in the system.

System liquidity significantly fell at the start of the week from a surplus of N579.6 billion in the prior week to a deficit of N68.9bn. Resultantly, the OBB and OVN surged at the start of the week, up 85.0ppts and 90.8ppts to settle at 150.0 percent and 164.2 percent respectively relative to 65.0 percent and 73.4 percent on the preceding Friday. However, on Tuesday, the OBB and OVN rates crashed to 15.3 percent and 16.4 percent respectively even as system liquidity deficit expanded to N80.1 billion.

By midweek, OBB and OVN rates inched 8.0ppts and 8.3ppts higher to 23.3 percent and 24.7 percent respectively as a result of a reduction in system liquidity deficit to N62.9bn while OBB and OVN rates trended southwards on Thursday to settle at 13.3% and 13.7% following OMO (N262.6bn) and T-Bills (N67.7bn) maturities which offset the impact of respective auctions held. At the OMO auction on Thursday, the CBN issued 112-day (Offered: N58.14m, Sale: N58.14m) and 182-day (Offered: N88.6bn, Sale: N40.9bn) instruments at 11.1 percent and 12.2 percent respectively. OBB and OVN rates closed the week at 7.8 percent and 9.0 percent, down 57.2ppts and 64.4ppts respectively w-o-w.