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N274 billion (Previous: c.N402 billion), Interbank Call rate rose 37bps to 5.04%. At the FX interbank market, the Naira appreciated 55kobo to NGN198.50/USD.
Nigeria_Fixed Income Daily: Markets trade mixed at week open
Market commentary
On the back of a moderation in system liquidity to c.​
Despite the moderation in system liquidity, trading in the T-bills market remained upbeat at week open with demand weighted towards the short-mid end of the space. Particularly yields declined 7bps on average across maturities with the 59DTM (-64bps) and 80DTM (-51bps) recording the most notable declines to close at 5.37% and 7.05% respectively. However, the bond market turned largely bearish with yields advancing 6bps on average across all maturities. Notably, sell pressure was weighted towards the long dated maturities with yields on the 12.50% FGN JAN 2026 and 12.40% FGN MAR 2036 recording the most sizeable advances - up 15bps and 18bps to 14.21bps and 14.26% respectively.​
Notwithstanding the gains recorded in the T-bills market today, we expect bearish sentiment to resurface in tomorrow’s session as the May inflation figure (which is expected to come in higher than the April figure) comes fully into focus. Similarly, we expect a cautious session in the bond market as investors eye the monthly bond auction scheduled for Wednesday.
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