…Naira gains 0.2% to NGN483.00/USD
MON, 23 NOV, 2020-theGBJournal- The overnight lending rate contracted by 183bps to 2.5%, following inflows for FGN bond coupon payments (NGN9.32 billion) into the system.
Trading in the NTB secondary market was mixed, albeit with a bearish tilt, as the average yield expanded marginally by 1bp to 0.1%.
The expansion stemmed from the long (+2bps) end of the yield curve, following sell-offs of the 339DTM (+17bps) instrument. Further up the curve, average yield remained unchanged at the short and mid segments.
Also, the OMO secondary market traded with mixed sentiments as the average yield was flat at 0.1%.
The Treasury bonds secondary market traded quietly following the reduced liquidity in the market. As a result, the average yield pared by 1bp to 4.0%. Across the curve, average yield declined by mid (-1bp) and long (-1bp) segments, following demand for the FEB-2028 (-1bp) and APR-2049 (-7bps) bonds, respectively. Average yield was unchanged at short end.
Meanwhile, in the currency market the naira was marginally lower, but closed flat at NGN386.00/USD at the I&E window, while it appreciated by 0.2% to NGN483.00/USD, at the parallel market.-With Cordros Research
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