Bond rate slides 5 basis points Monday as investorsâ sentiments in the Nigerian debt market were mostly bearish. It also appears that upward yield repricing has slowed down as the monetary policy committee decided to hold key rates caused setbacks for investorsâ quest for high returns on fixed income securities.
This week, analysts said there will be a total sum of N55.5 billion that will hit the financial system from maturing open market operations (OMO). In the past week, there have been liquidity squeeze in the financial system, which pushed money market rates upward.
Noting a quiet outing, fixed income traders at Chapel Hill Denham said they expect this inflow to trigger activities at the short-end of the yield curve as investors would be looking to re-invest the liquidity in the market.
Amidst renewed interest on long-dated instruments, the interest rate on government bonds slides 4 basis points on Friday while the Treasury bill closed flat. Analysts said the improved trend of financial system liquidity seen earlier this week upturned as the deficit increased from N74.10 billion on Thursday to N448.50