Nigeria_Fixed Income Daily: Bearish sentiment resurfaces
Interbank call rate surged 716bps to 27.33% on the back of relatively tight system liquidity. At the FX interbank market, the naira depreciated N0.72 to close at N314.92.
There was a clear sentiment reversal in fixed income markets today as bears seized the upper hand. Yields in the T-bills market rose 33bps amidst selling momentum weighted on short-dated bills. In particular, yields on the 37DTM (+103bps), 44DTM (+109bps), and 93DTM (+164bps) bills rose to 15.79%, 15.75%, and 15.09% respectively. Similarly, the bond market turned bearish although sell pressure was weighted across the entire space. The most notable changes were on the 12.50% FGN JAN 2026, 10.00% FGN JUL 2030, and 12.40% FGN MAR 2036 bonds as their yields climbed 15bps, 11bps, and 17bps to close at 15.21%, 15.07%, and 15.19% respectively.
Following consecutive bullish sessions, we believe today’s selloff signals a reversal in market sentiment. As such, we anticipate a subdued trading session tomorrow.
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