Nigeria_Fixed Income Daily: Bond market cautious at week open

Despite the decline in system liquidity to N231 billion (Previous: N321 billion), the interbank Call rate declined 80bps to 12.8%. At the FX interbank market, the Naira appreciated 55 kobo to NGN198.50/USD after recording an intraday low of NGN199.27/USD. Bears remained dominant in the T-bills market at week open as sell pressure across most maturities drove yields 25bps higher on average on average. Particularly, yields on the 58DTM (+134bps), 205DTM (+126bps) and 261DTM (+88bps) bills recorded the most significant increases, closing at 6.83%, 8.86%, and 8.85% respectively. Amidst a calmly traded session, sentiment in the bond market turned mixed as participants await the second quarter bond issuance calendar. Whilst the 15.54% FGN FEB 2020 bond shed 6bps to close at 11.31%, yield on the 12.40% FGN MAR 2036 bond rose 5bps to 12.60%.