WED. 18 JANUARY, 2023-theGBJournal| Activities in the Treasury bills secondary market were bearish, as the average yield expanded by 2bps to 3.3%.
Across the curve, the average yield expanded at the short (+4bps) end following profit-taking on the 8DTM (+72bps) bill but closed flat at the mid and long segments. Elsewhere, the average yield was flat at 2.9% in the OMO segment.
Trading in the Treasury bond secondary market was also bearish, as the average yield expanded by 5bps to 12.8%. Across the benchmark curve, the average yield closed flat at the short and mid segments but expanded at the long (+12bps) end as investors sold off the APR-2049 (+60bps) bond.
theG&BJournal thinks that the bearish trade today at both markets is driven by expectation of further rate hike when the Central Bank of Nigeria (CBN) meets next Monday to decide new rates benchmark after the Monetary Policy Committee (MPC) meeting.
The overnight lending rate was flat at 9.8%, as the average system liquidity closed at a net long position (N384.58 billion).
The naira appreciated by 0.1% to N461.25/USD at the I&E window.
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