Nigeria_Fixed Income Daily: Bearish momentum continues at week open
§Amidst recent CBN mop up, Interbank Call rate continued its ascent, up 184bps to 26.67%. At the FX interbank market, the naira rebounded from a record close of N332.07, appreciating N14.73 to close at N317.34.
§Fixed income markets began the week on a bearish note with yields up in both bills and bond spaces. In the T-bills market, yields climbed 60bps on average. Sentiment was especially weak towards the long dated bills with yields on the 339DTM (+112bps), 346DTM (+110bps), and 353DTM (+121bps) bills rising to 20.15%, 20.02%, and 22.49% respectively. Similarly, the bond market traded bearish with yields rising 31bps amidst notable sell pressure on short to mid-dated maturities. Particularly, yields on the 16.00% FGN JUN 2019 and 14.20% FGN MAR 2024 bonds rose 27bps and 22bps to close at 15.20% and 15.15% respectively.
§Despite persistent bearish sentiment, we expect the market to trade upbeat in the coming sessions – supported by the long anticipated liquidity inflow (N581 billion) from tomorrow’s bond maturities.
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