Nigeria_Fixed Income Daily: Yields moderation persists ahead of MPC's hold decision
- Market commentary
§ Amidst FAAC inflows, Interbank Call rate declined 410bps to 2.58%. Meanwhile, at the FX interbank market, the naira spot rate and one year forward rate remained stable at N305.50 and N378.00 respectively.
§Ahead of the first MPC decision of the year, where the committee decided to maintain all policy tools, yields continued to trend southwards in the Fixed Income market supported by buoyant liquidity. On the T-bills market, yields decline 19bps on average with the biggest movement observed on the short end of the space. Notably, yields on the 23DTM (-205bps), 30DTM (-175bps), and 58DTM (-82bps) bills moderated to 13.80%, 13.74% and 11.62% respectively. Similarly, the Bond market remained bullish as yields on the benchmark bonds declined 12bps on average. The most significant declines were recorded on the 16.00% FGN JUN 2019, 15.54% FGN FEB 2020, and 14.20% FGN MAR 2024 bonds as their yields declined 29bps, 23bps and 13bps respectively to settle at 16.16%, 16.29% and 15.96%.
§ With the MPC signaling possible easing in the near term, we expect the bullish sentiment in the market to persist.
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