Nigeria_Fixed Income Daily: Yields moderate despite CBN mop up
- Market commentary
§ The CBN conducted yet another OMO auction in today’s session, offering N50 billion each on the 176DTM and 344DTM bills. However, the apex bank sold N3.19 billion and N42.99 billion on the 176DTM and 344DTM at respective stop rates of 18.0% and 18.6% (effective yields: 19.71% and 22.55%). Despite the liquidity mop up, Interbank Call rate moderated 541bps to 4.67%. At the FX interbank market, the naira spot and one year forward rates held steady at N305.50 and N378.00 respectively.
§ Trading turned bullish in the T-bills market with yields moderating 91bps on average. The most obvious declines were recorded across the 204DTM (-532bps), 253DTM (-413bps) and the 22DTM (-353bps) with yields moderating to 15.01%, 17.10% and 12.49% respectively. Similarly, the bond market traded slightly bullish with yields declining marginally across the space. Notably, yields on the 14.20% FGN MAR 2024, 16.00% 29 FGN JUN 2019 and 12.1493% FGN JUL-2034 moderated 11bps, 5bps and 4bps to 15.83%, 15.52% and 15.94% respectively.
§ Notwithstanding today’s turnaround, we remain cautious as the CBN continues to mop up system liquidity. We foresee another OMO auction tomorrow given the tepid sales level recorded in today’s auction.
Vetiva provides clients with independent and unbiased access to analysis and opinion. We keep our clients on the cutting edge of market information and provide up to date market intelligence on quoted companies. Our services allow brokers, investment firms, and asset managers focus their energies on developing investment strategies and client relationships.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.