Nigeria_Fixed Income Daily: T-bill yields rise further amidst liquidity mop up
- Market commentary
§ The CBN conducted another OMO auction in today’s session, offering N30 billion and N50 billion on the 198DTM and 352DTM bills respectively. The apex bank eventually sold N10 billion and N8 billion on the 198DTM and 352DTM at respective stop rates of 18.0% and 18.6% (effective yields: 19.95% and 22.67%). Despite this, Interbank Call rate declined 333bps to 4.17%. At the FX interbank market, naira held at N305.25 and N378.00 against the dollar for the spot rate and one year forward rate respectively.
§Bearish sentiment persisted in the T-bills space today with yields climbing 35bps on average. Sell pressure was most evident on the short-dated bills with yields on the 16DTM (+180bps), 30DTM (+189bps), and 44DTM (+146bps) bills climbing to 14.18%, 16.46%, and 17.45% respectively. Meanwhile, sentiment turned bullish in the bond market amidst modest buying on the longer term bonds. Yields on benchmark bonds moderated 2bps on average as yields on the 12.1493% FGN JUL 2034 and 12.40% FGN MAR 2036 bonds moderated 4bps and 9bps to close at 15.59% and 16.19% respectively.
§ With bears holding a slight upper hand in the fixed income market, we anticipate cautious trading tomorrow as market participants eye the PMA scheduled for tomorrow where the 91-day and 182-day bills will be on offer.
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