Nigeria_Fixed Income Daily: Buoyant demand for yields at week open
Market commentary
§ Interbank Call rate remained stable at 13.0% amidst a relatively unchanged system liquidity. At the FX interbank market, the naira opened the week to a historic low, closing at
N350.22 against the dollar (prev:N328.90). Meanwhile, the one year forward rate declinedN27.14 to close atN321.00.§ The T-bills market continued recent trend as yields dropped 45bps on average. There were particularly significant declines in the yields of short-mid dated bills as the 59DTM (-341bps), 87DTM (-177bps), and 115DTM (-291bps) bills moderated to 14.75%, 15.35%, and 15.66% respectively. The bond market also traded bullish, although less obviously so as yields on benchmark bonds moderated 3bps on average. Notably, the yield on the 14.20% FGN MAR 2024 bond declined 17bps to close at 15.08%.
§ Given the buoyant demand observed at the start of the week, we anticipate further bullish trading tomorrow barring any CBN liquidity mop up.
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