Home Money MARKETS BRIEF: Bonds average yield expands by 8bps to 6.7% as players...

MARKETS BRIEF: Bonds average yield expands by 8bps to 6.7% as players take positions in market, naira gains 0.2% at I&E window

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MON 18 JAN, 2021-theGBJournal- Bearish sentiments persisted in the Treasury bonds secondary market as average yield expanded by 8bps to 6.7%. Across the curve, average yield expanded at the short (+6bps) and mid (+34bps) segments, following sell-offs of the JAN-2022 (+24bps) and APR-2029 (+81bps) bonds, respectively. Conversely, average yield declined at the long (-6bps) end, due to demand for the MAR-2050 (-40bps) bond.

At the Money Market, the overnight lending declined by 17bps to 0.8%, following inflows into the system from FGN bond coupon payments (NGN65.00 billion).

The NTB secondary market opened the week on a bullish note, as average yield declined by 11bps to 0.4%. Across the curve, average yield expanded at the mid (+4bps) segment, following sell-off of the 143DTM (+11bps) instrument, and contracted at the long (-25bps) end, as market participants bought up the 311DTM (-43bps) instrument. Average yield was flat at the short end. Similarly, average yield declined by 7bps to 0.7% at the OMO secondary market.

The naira strengthened by 0.2% to NGN393.83/USD at the I&E window but was flat in the parallel market at NGN475.00/USD.-With Cordros Research

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