The Money Market

Market opened about N78.2billion down today as rates went up by about 0.75% following increasing FX funding. OBB and overnight closed at 15.75% and 16.00% respectively, up from 15.00% and 15.50% recorded yesterday.

There is probability that there might be intermittent liquidity intervention from Central Bank to regulate rates pending the inflow from the Federal Account Allocation Committee (FAAC) disbursement. FAAC disbursement is expected towards the end of next week.

Treasury Bills Market

The Treasure bills market traded effectively today as yields fluctuate across most maturities traded. There was a general drop in yields by an average of about 0.10% on the short end. However, yields went up slightly again on the February and March bills as there was selling of those bills.

Current Benchmark yields are;
91days – 13.90%
182 days –14.90%
364 days –14.75%

The Bonds Market

The Bond market was moderately active today. Trading was focused on the Oct 2019 bond and the Jan 2022 bond. Meanwhile, the Oct 2019 saw a bit of selling pressure, closing about 20 kobo lower, while the Jan 2022 saw some demand with about 15 kobo appreciation in prices

The expectation at the next auction is for yields to come out slightly higher than current market levels, particularly on the new issue 7-year.

Read More:....http://myfinancialintelligence.com/index.php/2011-09-27-04-13-15/markets/33910-daily-market-update-june-15-2012