THE Money Market rates are expected to come low this week due to bond maturity of N535.0billion and T-bills of N169.4 billion expected to hit the system on Thursday.
Dealers said this would be an improvement on the liquidity level which opened last week on a low note.
Liquidity opening balance was at a low level of N89.9 billion at the beginning of last week.
As a result, the scramble for funds worth N88.1 billion at the Standing Lending Facility (SLF) by Deposit Money Banks (DMBs) brought Monday’s Open Buy Back (OBB) and Overnight rates to their week’s high of 78.3 per cent and 80.3 per cent respectively.
Dealers said yields on Nigeria’s local debt are seen falling further this week, with renewed appetite from both local and offshore investors and increased liquidity from maturing bonds.
The bonds market has seen increased demand after a peaceful general election spurring interest from local investors and foreign investors.
“The market was all bullish from a range of interest by investors taking position after the successful election,” one dealer said.
Traders said demand for local debt will increase as holders are likely to reinvest in the market.
Nigeria raised N70 billion ($352 million) at lower yields across all tenors at a bond sale last week.
Yields at the secondary market have fallen across the maturities with the 2016 paper down to 14.06 per cent from 14.96 per cent week before last, while the yield on the 2022 debt fell to 14.02 per cent against 14.87 per cent. The yield on the 2024 debt traded at 13.91 per cent from 14.81 per cent.