Nigeria_Fixed Income Daily:T-bills maintain gains
Whilst system liquidity improved further on the back of today’s OMO maturity, Interbank Call rate spiked to 22.58% (Previous: 6.25%). At the FX interbank market, the naira depreciated N7.36 to close at N321.50.
§The CBN announced two OMO auctions offering N50 billion on the 280DTM and 315DTM bills apiece but eventually sold N236 billion on the 315DTM bill at a stop rate of 18.5% (effective yield: 22.1%) whilst no sale was made on the 280DTM bill. Notwithstanding the higher yield level at the auction, the T-bills market traded mixed (with a bullish bias), driven by sustained buoyant system liquidity. Overall, yields declined 27bps on average across maturities with the 63DTM (-168bps) and 336 (+47bps) recording the most notable change in yield to close at 14.35% and 19.71% respectively. Similarly, the bond market traded mixed (also with a mild bullish bias) as yields declined by a marginal 5bps across maturities. The yield on the 14.20% FGN MAR 2024 rose 11bps to 15.11% whilst the yield on the 12.50% FGN JAN 2026 bond declined 13bps to 15.13%.
§Barring any liquidity mop up in tomorrow’s trading session, we expect the modestly bullish sentiment to filter into tomorrow’s session as the buoyant system liquidity continue to support demand.
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