Nigeria_Fixed Income Daily: Mixed trading surfaces on OMO announcement
- Market commentary
§ The CBN conducted an OMO auction today, offering N30 billion apiece on the 253DTM and 337DTM bills. However, no sale was made on both bills. Amidst this, Interbank Call rate shot up to 6.50% from 2.58% in the previous session. Meanwhile, at the FX interbank market, the naira spot rate and one year forward rate remained stable at N305.50 and N378.00 respectively.
§Following the OMO announcement, trading in the T-bills market turned bearish as yields advanced 20bps on average. The largest advances were recorded on the 29DTM (+199bps), 22DTM (+176bps) and 8DTM (+141bps) bills, with their respective yields closing at 15.73%, 15.56% and 14.84%. Trading however remained positive in the bond space, although buying momentum slowed slightly, with yields on traded benchmark bonds moderating 4bps on the average. Notably, yields on the 12.50% FGN JAN 2026 and 12.40% FGN MAR 2036 bonds declined 5bps and 11bps respectively to close at 16.72% and 16.66%.
§ Given that no sale was made at today’s auction, the CBN will likely revisit the market with an OMO announcement which could potentially keep T-bill yields on the uptrend.
Vetiva provides clients with independent and unbiased access to analysis and opinion. We keep our clients on the cutting edge of market information and provide up to date market intelligence on quoted companies. Our services allow brokers, investment firms, and asset managers focus their energies on developing investment strategies and client relationships.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.