Overnight, OBB rates soar as tight liquidity further weakens banks

. Overnight, OBB rates closes 36.33%, 39.42%

The Overnight (ON) and Open Buy Back (OBB) rates surged by 3000bps and 3242bps to close Friday at 36.33 per cent and 39.42 per cent respectively, as market liquidity remained tight, even as no open market operations (OMO) was auctioned on Friday.

Investment One report for the week, on the fixed income investment space, reported that yields on the 5yr and 10yr benchmark bonds increased by 14bps and 1bps to close 14.84 per cent and 14.94 per cent respectively.

Save the 7-yearr benchmark bond which remained flat, yield on the 20yr benchmark bond also inched 4bps to close at 14.75 per cent.
As in the preceding week, the investment analyst restated that activities in bond market this week, will also be driven by the level of liquidity in the system, as well as foreign investors’ participation in the market. This was just as the continued CBN FX’s intervention sales is billed to be supportive of the local currency.

However, on forex trading, at the IEFX window, the NGN lost -0.09 per cent to close against the USD at N360.57, it however gained +0.17 per cent to N468.30 against the GBP and +0.72 per cent to N415.57 against the EUR.

In the parallel market segment, the naira maintained its N363 levels against the USD. it depreciated by -0.21 per cent % and -1.19% to close against the GBP and EUR at N475 and N425 respectively.

Stories by Bonny Amadi