…The overnight lending rate expanded by 78bps to 31.8%, in the absence of any significant funding pressure on the system.
MON, MAR 11 2024-theGBJournal| Treasury bond secondary market was bearish Monday, as the average yield expanded by 3bps to 18.0%.
Across the benchmark curve, the average yield increased at the short (+2bps) and mid (+11bps) segments following profit-taking activities on the MAR-2024 (+8bps) and JUN-2033 (+45bps) bonds, respectively, but closed flat at the long end.
Similar trends followed in the FGN bond market last week as average yields rose to 18.01% pa (vs17.25% the previous week) due to sell-offs across all tenor buckets.
Average yields on the short-end (+75bps), mid-point (+99bps), and the long-end (+49bps) of the curve rose to 17.13%, 18.54%, and 18.33%, respectively
The Treasury bills secondary market was bearish, as the average yield advanced by 3bps to 18.8%. Across the curve, the average yield contracted at the short (-2bps) and mid (-3bps) segments driven by investors’ interest in the 87DTM (-2bps) and 178DTM (-3bps) bills, respectively.
Conversely, the average yield expanded at the long (+8bps) end due to sell pressures on the 332DTM (+122bps) bill. Elsewhere, the average yield declined by 3bps to 18.8% in the OMO segment.
The overnight lending rate expanded by 78bps to 31.8%, in the absence of any significant funding pressure on the system.
The naira appreciated by 0.6% to N1,617.96/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Last week, the Naira fell 4.86% to N1,627.40/US$1 at the NAFEM window.
In the parallel market, the Naira closed at N1,615.00/US$1 losing only 0.93%. This closed the gap between the official and street market rates. Year-to-date, the Naira has lost 44.26% on the back of continued supply challenges.
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