Nigeria_Fixed Income Daily: Mixed sentiment persists
​§The CBN held an OMO in today’s session, selling N135 billion (N50 billion on offer) on the 345-day bill at a stop rate of 18.5% (effective yield: 22.42%). Following this, Interbank Call rate advanced 167bps to 15.17%. In the FX Interbank market, the naira depreciated N4.61 to close at N312.98 whilst the one year forward remained unchanged at N351.60.
§Mixed sentiment persisted in fixed income markets as yields varied across the space. Yields in the T-bills market were down a marginal 6bps as a 222bps yield rise on the 30DTM (17.93%) bill tapered the impact of the declines on the 149DTM (-112bps) and 226DTM (-96bps) bills which settled at 17.96% and 19.39% respectively. Likewise, the bond market traded mixed with average yields coming in flat. Yield on 16.39% FGN JAN 2022 bond moderated 5bps to 14.68% whilst the yield on the 12.50% FGN JAN 2026 bond rose 4bps to 15.12%.
§ Given persistent mixed sentiment as the apex bank continues to mop up liquidity, we expect constrained buying in fixed income markets tomorrow.
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