The Week that was (January 7-11): CBN’s attack on system liquidity nudges short dated interest rates higher Liquidity conditions remain tight: Last week, CBN continued its offensive on the level of Naira liquidity with total OMO bill sale of NGN365billion (15% of which were STABS). The tight liquidity conditions meant that the thermometers of interbank […]

Happy Holidays and I must apologize for the two-week radio silence as I had to take a break from work to relax after a long hard year 😊 regular programming is back! The Week that was (December 10-28): Despite a hawkish CBN posture, yields moderate in response to a miserly DMO and still ‘excess liquidity’ […]

The Week that was (December 3-7): – CBN’s low tolerance for NGN liquidity pushes Naira yields higher CBN cranks up its liquidity tightening gears, pushing interest rates higher: As I noted last week, the CBN’s response to exchange rate pressures at the parallel market was to ramp up its mop-up of Naira liquidity in the […]

The Week that was (November 26-30): – CBN ramps up liquidity tightening, inverts yield curve further Speculative pressures at the parallel market resurrect CBN’s liquidity aggression: Like a sleeping lion poked in the eye by pesky hyenas, CBN’s aggressive stance on NGN liquidity returned with a vengeance following the mid-week USDNGN depreciation at the parallel […]

The Week that was (November 19-23): – Yields decline as CBN dials down on tightening rhetoric CBN holds, but largely subdued tone at the MPC: At the last monetary policy meeting in 2018, the CBN opted to hold all policy parameters by a unanimous decision contrary to my expectations for a small hike. Even more, […]

The Week that was (November 12-16): – CBN’s liquidity tightening continues to underpin higher rates CBN maintains hawkish stance on system liquidity: For the second week running CBN continued on the path of liquidity tightening with OMO bill sales of NGN451billion in excess of OMO bill maturities of NGN424billion. This resulted in a rise in […]

Nigeria Fixed Income Weekly The Week that was (November 5-9): – CBN liquidity tightening drives interest rates higher CBN doubles down on liquidity tightening with two OMO auctions: Though coming into the week, the maturity profile appeared tame with only OMO maturities of NGN376billion, the money market opened to a surge in system liquidity as […]