Market Update

HIGHLIGHTS for the week ended Friday 02/05/08 Liquidity persisted in the market inspite of aggressive mop-up by the CBN. OBB & Overnight rates opened at 6% and 6.5% respectively, but increased slightly by the end of the week to close at 7% & 8% respectively. The bonds market was very active with yields on 3year bonds declining as a result of increase in demand. Yields in the Treasury bills secondary market continued to decline; a fallout of the extreme liquidity in the interbank market. Stop rate at the 91-days Primary Auction increased slightly from 8.10% to 8.15% However, the 182-days Primary Auction stop rate decreased from 9.25% to 9.20% The market witnessed a net outflow of =N=165,650 million through the Primary & OMO markets. Outflow through FX this week was about =N=3,182.49 million as against =N=1,885.9illion the previous week. Week Starting Monday 05/05/08   N billion  NTB Floatation - 91 days               NTB Floatation - 182 days               Maturing Bills(PRY) - 91 days 5.11              Maturing Bills(PRY) - 182 days 35.00              Maturing Bills(OMO)Mon 0.00              Maturing Bills(OMO)Tues 0.00              Maturing Bills(OMO) Wed 0.00              Maturing Bills(OMO) Thurs 74.80              Maturing Bills(OMO) Fri 0.00             Outlook for the week starting Monday 05/05/08 Market is expected to remain liquid as Tenored Reverse REPO begin to mature into the system. CBN is expected to continue aggressive mop-up of excess liquidity.

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