Nigeria_Fixed Income Daily: Yields race north at week close
- Market commentary
§ Interbank Call rate advanced 300bps to 25.67% amidst slightly tighter system liquidity. At the FX interbank market, the naira appreciated N1.61 against the dollar to close the week at N304.75 in the spot market whilst the one year forward remained unchanged at N355.
§ The Fixed income market maintained a strong bearish bias at week close. In the T-bills market, yields climbed 44bps on average amidst intense sell pressure on short-mid end of the space. Specifically, yields on the 20DTM (+159bps), 111DTM (+122bps), and 181DTM (+208bps) bills rose to 16.83%, 16.64%, and 20.06% respectively. The bond market also traded bearish as yields on benchmark bonds advanced 6bps on average. The largest advances were recorded on the 16.00% FGN JUN 2019 and 12.1493% FGN JUL 2034 bonds which added 9bps and 11bps to close at 14.70% and 15.29% respectively.
§ With bearish sentiment dominating the week, we expect cautious trading next week ahead of the Primary Market Auction scheduled for Wednesday.
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