Nigeria_Fixed Income Daily: T-bills resilient ahead of PMA results
- Market commentary
§ Amidst relatively unchanged liquidity, Interbank Call rate moderated a further 17bps to 14.00%. At the FX Interbank market, the naira appreciated N10.07 to close at N310.24 whilst the one year forward rate remained unchanged at N388.20.
§Trading in the T-bills market was markedly bullish today as healthy demand on short-dated maturities drove yields down 43bps on average. The demand was concentrated at the short end of the space with yields on the 29DTM (-242bps), 57DTM (-313bps), and 64DTM (-266bps) bills down to 16.43%, 15.54%, and 15.37% respectively. In contrast, the bond market traded mixed today albeit with a discernable pattern across the yield curve. Specifically, moderations in the yields of short-mid tenured bonds such as the 15.54% FGN FEB 2020 bond (-6bps to 14.92%) were balanced by advances on the longer tenured bonds with yields of the 12.50% FGN JAN 2026 and 12.40% FGN MAR 2036 bonds up 3bps and 2bps to 15.20% and 15.26% respectively.
§ Whilst we note the positive sentiment in the T-bills market so far this week, we expect the yet-to-be-released result of today’s Primary Market Auction to dictate trading activities tomorrow.
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