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Nigeria_Fixed Income: Mixed sentiment trails market at week close
Market commentary
- Following a marginal increase in system liquidity to about
N277 billion, interbank placement rates moderated with the Call rate down 233bps to 5.50%. At the FX interbank market, the Naira appreciated marginally (3 kobo) to close at NGN199.05/USD.
- Trading in the T-bills market turned mixed in today’s session as buying momentum slowed following previous gains. Whilst yield on the 328DTM bill declined 47bps to 11.26%, the yield on the 118DTM bill recorded the most notable rise in yield, up 38bps to 8.76%. Similarly, amidst a calmly traded session, the bond market was mixed at week close as market participants traded the mid-long dated maturities cautiously whilst demand persisted on a few short term bonds. Notably, the yield on the 16.00% FGN JUN 2019 bond declined 23bps to 13.05%, whilst the yield on the 14.20% FGN MAR 2024 bond advanced 21bps to 13.57%.
- Amidst a broadly mixed market sentiment, we expect the anticipated FAAC inflow (scheduled to hit the system early next week) to support buying at week open – particularly the short end of the yield curve.
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