MON, JAN 22 2024-theGBJournal|The FGN Bonds and Treasury Bills secondary market opened the week’s trading with contrasting sentiments. While the bears feasted on treasury bills market, the FGN Bonds saw bullish trade.
The FGN bonds average yield pared by 1bp to 13.5%. Across the benchmark curve, the average yield expanded at the short (+13bps) end as investors sold off the MAR-2027 (+79bps) bond, while it contracted at the long (-9bps) end following demand for the JUN-2053 (-32bps) bond.
Conversely, the average yield closed flat at the mid-segment.
Proceedings in the Treasury bills secondary market were bearish, as the average yield expanded by 47bps to 3.9%.
Across the curve, the average yield advanced at the short (+2bps) and long (+94bps) ends, driven by profit-taking activities in the 31DTM (+14bps) and 234DTM (+713bps) bills, respectively.
Meanwhile, the average yield was flat at the mid segment. Elsewhere, the average yield declined marginally by 1bp to 8.4% in the OMO segment.
At the money market, the overnight lending rate contracted by 225bps to 21.0%, following the inflows from FGN bond coupon payments (N166.48 billion).
Meanwhile, the naira depreciated by 2.5% to close N925.34/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
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