The Treasury Bills (“T-Bills”) market started the month on a bearish note with average rate across tenors increasing 73bps W-o-W from 13.7% to 14.4%. The bearish performance can be largely attributed to the increase in the frequency of Open Market Operations (“OMO”) auction which was conducted on all trading sessions of the week save for Friday. This squeezed liquidity level in the system leading to significant sell-offs on Friday.
The downswing in the domestic stock market continued last week as the All-Share Index closed in the red, down by 0.02% W-o -W to settle at 30,866.82 points while YTD loss settled at -19.3%.
The money market rate increased significantly last week as the Overnight rate (OVN) and Open Buy Back (OBB) rose to 26.08% and 24.33% respectively. Consequently, the average money market rate rose by 8.24% to settle at 25.21% due to CBN activities to aggressively mop up liquidity during the week, despite significant inflow from October FAAC payment of cN342bn and OMO maturity of cN684.84bn.