Nigeria_Fixed Income Daily: Bearish sentiment emerges at week open
- Market commentary
§ Amidst relatively unchanged system liquidity, Interbank call rate climbed 350bps to 14.83% as liquidity remains squeezed. Meanwhile, the naira spot and one year forward rates were unchanged against the dollar at N305.00 and N349.00 respectively.
§The T-bills market traded bearish as the low system liquidity continued to hamper demand. Overall, yields rose 37bps on average with the largest advances observed on short term maturities. Particularly, yields on the 38DTM (+358bps), 45DTM (+198bps), and 10DTM (+169bps) bills shot up to 13.55%, 13.63% and 16.04% respectively. The Bond market also traded bearish as yields advanced across all traded maturities. Notably, yields on the 15.54% FEB 2020, 14.50% JUL 2021, and 14.20% FGN MAR 2024 bonds advanced 8bps, 5bps, and 4bps respectively to close at 16.50%, 16.51% and 16.16%.
§ We expect cautious trading in the coming session as investors keep an eye on the Primary Market Auctions holding Wednesday.
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