Nigeria_Fixed Income Daily: T-bill yields trend downward at week open
- Market commentary
§ Though liquidity remains tight following recent CBN liquidity mop up, Interbank Call rate moderated slightly (-34bps) to 15.33%. At the FX Interbank market, the naira appreciated N2.00 to close at N304.75 whilst the one year forward rate appreciated N34.60 to close at N353.60.
§Fixed income markets kicked off the week on diverging paths today with attention concentrated in the T-bills space. Yields dropped 28bps on average in the T-bills market amidst strong demand at the short end. In particular, yields on the 59DTM (-229bps), 66DTM (-216bps), and 115DTM (-103bps) bills moderated to 12.99%, 13.65%, and 18.06% respectively. In contrast, the bond market traded bearish amidst a tepid trading session that saw yields on benchmark bonds rise 5bps on average. The largest swings were seen on the auction bonds with yields on the 12.50% FGN JAN 2026 and 12.40% FGN MAR 2036 bonds rising 6bps and 11bps to close at 15.28% and 15.41% respectively.
§ With fixed income markets beginning the week on a mixed note, we suspect that tight liquidity may constrain bullish activity in the coming session.
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