Nigeria_Fixed Income Daily: Bond yields moderate further whilst T-bills turn bearish
- Market commentary
§ The CBN conducted an OMO auction offering N20 billion and N30 billion on the 146DTM and 300DTM bills respectively. However, no sale was made on both bills. Amidst this, Interbank Call rate rose 57bps to 8.83%. Meanwhile, At the FX interbank market, the naira spot rate depreciated N0.50 against the greenback, closing at N305.00.
§The T-bills market turned bearish as yields advanced 13bps on average. The 34DTM (+96bps), 118DTM (+133bps) and 132DTM (+82bps) bills logged the largest yield advances with their respective yields settling at 16.29%, 16.05% and 16.97%. However, the bond market traded slightly bullish as yields on the benchmark bonds declined 3bps on average. Notably, yields on the 14.20% FGN MAR 2024, 12.50% FGN JAN 2026 and 12.40% FGN MAR 2036 bonds moderated 4bps, 7bps and 5bps each to close at 16.05%, 16.56% and 16.53% respectively.
§ At week open, we anticipate mixed trading in the T-bills space as the CBN is likely to conduct another OMO auction given that no sale was made at today’s auction. However, we expect cautious trading in the bond market ahead of the monthly bond auction scheduled for Wednesday.
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