Nigeria_Fixed Income Daily: Yields moderate further ahead of MPC decision
- Market commentary
§ Interbank Call rate declined 399bps to 6.68% amidst a relatively unchanged system liquidity. Meanwhile, at the FX interbank market, the naira spot rate and one year forward rate remained stable at N305.50 and N378.00 respectively.
§The T-bills market traded mixed with a bullish bias as moderations on the short to mid-term of the curve were countered by advances mostly on the long dated maturities. Particularly, yields on the 31DTM (-118bps), 59DTM (-127bps) and 199DTM (-161bps) bills dropped to 15.49%, 12.44% and 18.43 respectively, whilst the yields on the 325DTM (+48bps) and 332DTM (+91bps) bills rose to 21.29% and 21.34% respectively. Meanwhile, the Bond market turned significantly bullish (save for the short end of the space) as yields on the benchmark bonds declined 12bps on average. Notably, yields on the 15.54% FGN FEB 2020, 14.20% FGN MAR 2024 and 12.1493% FGN JUL 2034 bonds moderated 17bps, 15bps and 16bps to settle at 16.50%, 16.09% and 15.97% respectively.
§ We expect cautious trading in tomorrow’s session as investors keep an eye on the first MPC decision of the year.
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