WED 28 JULY, 2021-theGBJournal-The naira was flat at NGN411.60/USD at the I&E window but depreciated by 3.5% to NGN522.00/USD in the parallel market in an apparent response to the ban of sales of forex to Bureau De Change operators in the country.
The overnight lending rate contracted by 75bps to 15.5% in the absence of any significant funding pressures on the system.
Trading in the NTB secondary market was muted as market participants positioned for today’s PMA, with the CBN set to roll over NGN58.00 billion worth of maturities. Thus, the average yield stayed flat at 6.3%. Elsewhere, the average yield at the OMO segment expanded slightly by 2bps to 8.6%.
The Treasury bond secondary market was mixed, albeit with bullish bias, as the average yield pared by 1bp to 12.0%. Across the benchmark curve, the average yield was flat at the short and long ends but contracted at the mid (-4bps) segment due to the demand for the APR-2029 (-9bps) bond.
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