The Money Market
Opening today, the Money market was very liquid owing to the redemption of about N98 Billion worth of Open Market Operations (OMO) bills on Friday by the Central Bank of Nigeria (without replacement). Budgetary disbursement in the form of Excess crude Augmentation, estimated at about N70 Billon was also received. This resulted in surplus cash position of about N103 Billion, an improvement from the short position of N42.6 Billion recorded by the market opening on Thursday April 05, 2012.
Consequently, Interest rates were bearish, with about 1% drop on the overnight rate which came down from 14.54% to 13.42%
Settlement of transactions on the Central Bank’s Real Time Gross Settlement (RTGS) platform was hampered by system downtime at the CBN, which was blamed on power issues.
The Treasury Bills Market
The T-Bills market saw some apathy towards fresh position taking by dealers, as institutions were skeptical of taking positions in view of the Primary auction tomorrow. Significant activity was seen on the shortest trading bill (which will mature in about 9 days, which dropped by about 0.35% to close at 13.60%).

The consensus view of market participants is that yields at the CBN auction tomorrow will close at current market levels or slightly lower, implying decent demand levels.

Current Benchmark yields
• 91days - 13.90%
• 182 days – 14.70%
• 364 days – 14.80%

Read More: http://myfinancialintelligence.com/index.php/2011-09-27-04-13-15/world/14988-daily-market-update-april-10-2012