Nigeria_Fixed Income Daily: Stubborn bears steer yields higher
- Market commentary
§ Interbank Call rate advanced 350bps to 22.67% amidst slightly tighter liquidity. At the FX interbank market, the naira appreciated N1.40 against the dollar to close at N306.36 at the spot market whilst the one year forward remained unchanged at N355.
§ Bearish trading persisted in the T-bills market today amidst sell pressure on the short term bills. Specifically, yield on the 35DTM (+292bps) and 105DTM (+66bps) bills advanced to 14.19% and 18.45% respectively. Similarly, the bearish streak persisted in the bond space with yields on benchmark bonds rising 4bps on average. The largest swings were observed on the short term bonds as yields on the 7.00% FGN OCT 2019 and 15.54% FGN FE 2020 bonds rose 7bps and 9bps to 15.03% and 15.27%.
§ With bearish sentiment persisting in today’s session, we anticipate a tepid close to the week as tight liquidity constrains buying.
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