Nigeria_Fixed Income Daily: Bills and bonds diverge at week close
- Market commentary
§ Interbank Call rate moderated 150bps to 13.0% amidst relatively unchanged liquidity. At the FX interbank market, the naira depreciated N24.15 against the dollar at to hit a 10-week low of N328.90 at the spot market whilst holding at N348.18 on the one-year forward.
§ The T-bills market closed the week strongly as yields declined 45bps on average. Demand was most apparent at the short end of the space with yields on the 27DTM (-217bps), 41DTM (-286bps), and 76DTM (-173bps) bills declining to 14.60%, 12.55%, and 14.67% respectively. Meanwhile, the bond market capped off a bearish week with yields on benchmark bonds rising 3bps on average amidst depressed demand. Notably, yield on the 14.20% FGN MAR 2024 bond advanced 17bps to close at 15.25%.
§ Although the demand for T-bills remained resilient at week close despite consistent CBN mop up, we anticipate a relatively tepid trading session at week open across the fixed income space.
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