TUE 10 AUG, 2021-theGBJournal- The overnight lending rate contracted by 25bps to 13.5%, following inflows from OMO maturities (NGN80.00 billion).
The NTB secondary market closed with bullish sentiments, as the average yield pared by 1bp to 5.6%. Across the benchmark curve, average yield contracted at the mid (-4bps) and long (-1bp) segments following market participants’ demand for the 107DTM (-5bps) and 212DTM (-3bps) bills, respectively. However, average yield was flat at the short end. Similarly, the average yield at the OMO segment contracted by 4bps to 7.6%.
Trading in the Treasury bond secondary market was mixed, albeit with a bullish tilt, as the average yield contracted by 6bps to 11.8%. Across the benchmark curve, average yield contracted at the mid (-1bp) and long (-15bps) segments following demand for the JUL-2030 (-5bps) and JUL-2045 (-48bps) bonds, respectively. Conversely, average yield expanded at the short end (+2bps) due to sell-off of the APR-2023 (+20bps) bond.
Meanwhile, the local currency traded unchanged Tuesday at NGN411.50/USD and NGN510.00/USD at the I&E window and the parallel market, respectively.
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