Nigeria_Fixed Income Daily: Bears dominate at week close
​§ At an OMO auction held today, the CBN offered N50 billion each on the 195DTM and 279DTM bills. Eventually, the apex bank sold N71.6 billion on the 195DTM bill at a stop rate of 18% (effective yield: 19.92%) while no sale was made on the 279DTM bill. Following this, Interbank Call rate advanced 100bps to 18.92%. At the FX interbank market, the naira appreciated N1.89 to close at N314.95.
§Fixed income markets completed the sentiment reversal from the start of the week as yields trended higher in both spaces. In the T-bills market, yields advanced 18bps on average amidst sell pressure across the entire space. The most notable yield advances were observed on the 83DTM (+117bps), 104DTM (+61bps), and 328DTM (+83bps) bills as they closed at 15.81%, 14.12%, and 19.79% respectively. The bond market also traded largely bearish with yields inching up 9bps on average. In particular, the yields on the 12.50% FGN JAN 2026, 10.00% FGN JUL 2030, and 12.40% FGN MAR 2036 bonds rose by 19bps, 14bps, and 15bps to close at 15.35%, 15.29%, and 15.16% respectively.
§ With tighter liquidity expected to further dampen market sentiment (following OMO mop up), we anticipate a bearish start to next week’s trading.
Vetiva provides clients with independent and unbiased access to analysis and opinion. We keep our clients on the cutting edge of market information and provide up to date market intelligence on quoted companies. Our services allow brokers, investment firms, and asset managers focus their energies on developing investment strategies and client relationships.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.