Greetings after a long hiatus. Apologies for the radio silence, I had to deal with some issues. Back to our regular weekly programming. Catching up! CBN clarifies position on the 1-yr: Coming into September, sentiment across domestic fixed income markets was how the CBN was going to deal with the liquidity deluge from large OMO […]

The week that was (June 17-21) CBN’s ‘radio silence’ on OMO activity: Money markets remained liquid for the second consecutive week as the CBN did not conduct any OMO bill auction. This helped keep the interbank rates in single digits: OBB (8.7%) and OVN (9.2%). However, front-end yields closed higher (+20bps on average) driven by […]

The week that was (June 10-14) Divergent patterns across the curve: Interest rates moved in different directions across the short and long end of the Naira yield curve last week. Short term interest rates declined (-46bps) in response to a liquidity build-up during the four-day trading week after the CBN held off from undertaking an […]

Rates decline on reduced CBN activity in money markets: Interest rates along the along the naira yield curve have receded in recent weeks driven by muted OMO bill issuance by the CBN which fueled a bullish bias as investors rushed to invest in short-dated maturities. Given relatively lower system maturities, the CBN has dialed back […]

The week that was (April 1-5): Rates rise in response to CBN tightening and new 30-year bond sale CBN shows its hawkish hand: In the prior week, I noted that the CBN’s dovish twist at the MPC, where it cut its key policy rate to 13.5%, was likely a non-credible symbolic one. I did not […]

The week that was (March 25-29): CBN surprises with a volte-face on interest rates at MPC The incredible rate cut: The big news last week was the 50bps surprise cut in MPR at the end of March 2019 MPC meeting. In prior week, I noted that the CBN re-introduced the 1-year OMO bill at an […]

The week that was (March 18-22): CBN leads interest rates higher CBN steps back in to nudge markets higher: Largely reflecting the liquidity hangover across the financial system, interest rates opened the week lower with knock-on at the primary market auction on Wednesday where the 1-yr NTB closed at a discount rate of 12.34% (effective: […]