TUE SEPT 17 2024-theGBJournal| The FGN bond secondary market was quiet on Tuesday as the average yield closed flat at 18.5%.
Across the benchmark curve, the average yield expanded at the short (+1bp) end due to the selloff of the JAN-2026 (+5bps) bond but declined at the mid (-1bp) segment following interest in the JUN-2033 (-6bps) bond.
The average yield remained unchanged at the long end.
The NTB secondary market traded with bearish sentiments, as the average yield expanded by 8bps to 20.4%. Across the curve, the average yield declined at the short (-4bps) end due to demand for the 79DTM (-4bps).
Meanwhile, the average yield expanded at the mid (+8bps) and long (+16bps) segments, driven by profit taking activities on the 156DTM (+83bps), and 247DTM (+245bps) bills, respectively. Similarly, the average yield expanded by 2bps to 23.7% in the OMO segment.
The overnight lending rate contracted by 73bps to 31.0% following inflows from FGN bond coupon (NGN86 billion).
At the FX market, the naira depreciated by 6.7% to NGN1,656.49/USD today in the Nigerian Autonomous Foreign Exchange Market (NAFEM), after surging 3.0% w/w to N1,546.41/USD last week at the NAFEM following Central Bank of Nigeria’s CBN’s intervention of c.USD 121 million.
Total turnover at the NAFEM as of 12 September decreased by 15.7% WTD to USD980.92 million, with trades consummated within the NGN1,499.00/USD – NGN1,668.00/USD band.
In the forwards market, the naira rate decreased across the 1-month (-0.5% to N1,668.65/USD) and 3-month (-0.2% to N1,738.23/USD) contracts, but increased across the 6-month (+0.2% to N1,838.87/USD) and 1-year (+1.1% to N2,052.05/USD) contracts.
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