Nigeria_Fixed Income Daily: T-bill yields halt recent declines
- Market commentary
§ Interbank Call rate declined 17bps to 13.25% amidst a relatively unchanged system liquidity. At the FX interbank market, the naira depreciated N0.50 against the dollar to close at N305.00 at the CBN FX spot market whilst remaining unchanged at N349.00 at the one-year forward market.
§ In a tepid trading session, sentiment turned slightly bearish in the T-bills market as yields rose 9bps on average amidst notable sell pressure on short-dated maturities. Specifically, yields on the 14DTM (+58bps) and 21DTM (+121bps) bills rose to 11.15% and 11.67% respectively. Meanwhile, the bond market traded mixed with yields on benchmark bonds down a marginal 2bps on average. Whilst yield on the 12.40% FGN MAR 2036 bond moderated 10bps to 15.89%, yield on the 16.39% FGN JAN 2022 bond advanced 4bps to close at 15.59%.
§ We believe the relative lack of activity in the market is evidence of the prevailing weak sentiment. Therefore, we expect further cautious trading tomorrow as investors cherry-pick across the curve.
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