The Money Market
The Money Market opened with market liquidity of N75.6 Billion in free cash position. This was due to Central Bank’s sale of OMO Bills yesterday with same-day settlement.
Consequently, Interest Rates on overnight transactions moved up to 14.25% from 14% where it closed yesterday. Dealers are of the opinion that rates will continue to move up until next week Thursday when N71 billion of Treasury Bills will mature and increase market liquidity. Some Dealers however expressed concern about the Central Bank Open Market Operation (OMO) which might deprive the market of the impact of the maturing Treasury Bills next week, should the CBN continue with its liquidity mop up.
In other related news, the chances that the Federal Account Allocation Committee will disburse this month’s budgetary allocation next week as expected are slim as it has been rumoured that Governors are ready for a showdown with the Federal Government over what they termed illegal and unwarranted deductions for fuel subsidy, from the federation account. It is said that about N304Billon had been deducted in the months of January and February, as against a budgeted amount of N148 Billon for both months.
Treasury Bills Market
The Treasury Bills Market witnessed an upward trend in yields across all maturities. Yields on the short tenured bills increased by an average of 0.15% while the long tenured bills increased slightly by an average 0.05%.

Read More: http://myfinancialintelligence.com/index.php/2011-09-27-04-13-15/world/15979-daily-market-update-april-13-2012