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Nigeria_Fixed Income Daily: Yields open mixed after festive holidays

• Market commentary

§ Amidst relatively unchanged liquidity, the Interbank Call rate declined 384bps to 15.33%. Meanwhile, at the FX interbank market, naira remained unchanged at N305.25 and N378.00 against the dollar for the spot rate and one year forward rate respectively.

§The T-bills market traded mixed with yields declining 10bps on average. Whilst yields on short to mid-dated bills moderated, yields advanced across the long end of the space. Notably, yields on the 22DTM (-75bps), 85DTM (-174bps) and 190 (-20bps) declined to 14.85%, 10.83% and 19.46% respectively whilst the most significant advances were seen on the 197DTM (+171bps) and 232DTM (+88bps) with their respective yields closing at 19.78% and 20.90%. The Bond market also traded mixed, however, buying was concentrated on the long end of the space with yields on the 12.1493% FGN JUL 2034 and the 10.00% FGN JUL 2030 declining 6bps and 4bps respectively to close at 15.60% and 15.85%.

§ Barring any liquidity mop up from the apex bank tomorrow, we expect the anticipated OMO maturity (due tomorrow) to support buying sentiment – particularly at the short end of the curve.