TUE OCT 15 2024-theGBJournal| The FGN bond secondary were bearish as the average yield expanded by 8bps to 19.0% on Tuesday.
Across the benchmark curve, the average yield increased at the long (+17bps) end, driven by sell-offs on the JUN-2038 (+156bps) bond.
Meanwhile, the average yield closed flat at the short and mid segments.
The FGN Bonds Market traded on a calm note all through last and Monday as trades were consummated on the 19.30% 29s, May 33s and Feb 34s at 19.40%, 20.80% and 20.50%, respectively.
Furthermore, the 2031 bond quoted at 21.35/21.10.
At the Treasury bills secondary market, bearish sentiments dominated also, as the average yield expanded by 43bps to 23.5%.
Across the curve, the average yield dipped at the short (-1bp) and mid (-2bps) segments, driven by demand for the 72DTM (-2bps) and 163DTM (-2bps) bills, respectively, but expanded at the long (+94bps) end due to profit-taking activities on the 219DTM (+178bps) bill.
Elsewhere, the average yield contracted by 2bps to 25.9% in the OMO segment.
The Q4 Bond issuance calendar was released, featuring the reopening of the 29s and 31s with 80-100bn on offer while 33s was taken off.
Week-on-week, the average benchmark yield appreciated by 2bps to close at 18.66%
The overnight lending rate inched higher by 1bp to 32.7% in the absence of any significant funding pressure on the system.
Meanwhile, the naira depreciated by 6.4% to N1,658.97/USD in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Last week, the exchange rate at the NAFEM window dipped further by 0.61% (5.54% the
previous week) against the US dollar to N1,641.27/US$1. This brought the year-to-date depreciation on the Naira to 44.73%, 4.39% shy of the total depreciation in 2023.
The parallel market shared the same sentiment, as the Naira gave up its previous week’s gain, losing by 1.76% to end the week at N1,700.00/US$1.
However, the official market rate is still trading at a premium of 3.58% to the street market rate.
The CBN’s published gross foreign exchange reserves added US$62.58mn (+0.16%) to end the week at US$38.67bn.
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