Nigeria_Fixed Income Daily: Yields trend north following mop up
- Market commentary
§ The CBN held an OMO auction for the second consecutive day, selling N22.7 billion and N28.8 billion on the 184-day and 338-day bills (N50 billion on offer for each) at respective stop rates of 18.0% and 18.5% (effective yields: 19.80% and 22.32%). Despite this, boost from FAAC inflow (c.N190 billion) supported system liquidity with Interbank Call rate declining 333bps to 10.67%. At the FX interbank market, the naira spot rate remained at N305.00 to the dollar whilst the one year forward rate remained unchanged at N348.14.
§ Fixed income markets turned slightly bearish during a relatively muted trading session. In the T-bills market, yields rose 19bps on average following advances on the 72DTM (+87bps), 128DTM (+103bps), and 212DTM (+54bps) bills which settled at 18.55%, 19.24%, and 19.80% respectively. The bond market also traded slightly bearish with an average 4bps uptick on the yields of benchmark bonds. All tradeable bonds registered advances with the largest yield changes recorded on the 16.00% FGN Jun 2019, 12.50% FGN JAN 2026, and 12.40% FGN MAR 2036 bonds which rose by 6bps apiece to close at 14.54%, 15.36%, and 15.42% respectively.
§ The relatively upbeat sentiment observed at week open has dissipated and with the consistent mop up from the apex bank, we expect cautious trading to persist in tomorrow’s session.
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.