TUE JULY 01 2025-theGBJournal| Nigeria’s naira fell and treasury bill and FGN Bonds firmed on Tuesday, driven by demand
As at close of the day’s trading session, the naira traded by 0.6% to lower to N1,535.00/US$1 against the dollar. The currency traded at N1,526 on Monday, following substantial inflows.
The benchmark government treasury bill traded bullish, as the average yield fell 15bps to 20.1%.
Across the curve, the average yield expanded at the short (+2bps) end, due to sell pressures on the 9DTM (+31bps) bill, but contracted at the mid (-20bps) and long (-17bps) segments, driven by the demand for the 191DTM (-91bps) and 205DTM (-79bps) bills, respectively.
The average yield contracted by 31bps to 26.1% in the OMO segment.
Similarly, the FGN bond secondary market traded on a bullish note, as the average yield contracted by 11bps to 18.0%.
Across the benchmark curve, the average yield contracted at the short (-15bps), mid (-12bps) and long (-7bps) segments, driven by the demand for the APR-2029 (-43bps), FEB-2031 (-33bps) and JUN-2038 (-45bps) bonds, respectively.
The overnight lending rate contracted by 21bps to 27.0% in the absence of any significant inflows into the system.
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