Nigeria_Fixed Income Daily: Bears hold firm at week close
- Market commentary
§ Interbank Call rate advanced 50bps to 3.92% amidst a relatively unchanged system liquidity. At the FX interbank market, the naira held at N305.00 against the dollar at the spot market whilst the one year forward rate rose by N29.00 to settle at N378.00.
§Bearish sentiment drove trading in the fixed income market at week close. Yields rose 10bps on average in the T-bills market with sell pressure weighted on the short to mid-dated maturities. In particular, yields on the 13DTM (+81bps), 90DTM (+56bps), and 146DTM (+81bps) bills rose to 8.05%, 15.38%, and 18.82% respectively. Similarly, the bond market traded bearish with yields on benchmark bonds rising 7bps on average. The most significant advances were seen on the yields of the 15.54% FGN FEB 2020, 16.39% FGN JAN 2022, and 12.1493% FGN JUL 2034 bonds which advanced 13bps, 16bps, and 8bps to settle at 15.88%, 15.68%, and 15.57% respectively.
§ With bearish sentiment resurfacing at the end of the week, we anticipate a cautious start to trading next week.
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