Nigeria_Fixed Income Daily: Yields rise, October inflation hits 18.3%
- Market commentary
§ Interbank Call rate moderated a slight 67bps to 25% amidst a relatively unchanged system liquidity. At the FX interbank market, the naira depreciated N0.50 against the dollar to close at N305.25 at week open in the spot market whilst the one year forward remained unchanged at N355.
§ The fixed income market traded bearish on the first trading day of the week as market participants responded to the rise in inflation to 18.3% in October (September: 17.9%). In the T-bills market, yields rose 18bps on average amidst sell offs on short dated bills. Specifically, yields on the 24DTM (+213bps), 31DTM (+110bps), and 45DTM (+119bps) bills climbed to 16.62%, 15.97%, and 16.16% respectively. Likewise, the bond market traded bearish with yields on benchmark bonds up 8bps on average. The most significant yield advances were observed on the 16.00% FGN JUN 2019, 14.20% FGN MAR 2024, and 12.1493% FGN Jul 2034 bonds which rose 15bps, 14bps, and 9bps to settle at 14.85%, 15.28%, and 15.38% respectively.
§ With bearish sentiment persisting amidst the high inflation figure, we expect investors to tread cautiously tomorrow ahead of the Primary Market Auction scheduled for Wednesday.
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.