…At the money market, the overnight lending rate expanded by 246bps to 26.7%, in the absence of any significant funding pressure on the system.
TUE, FEB 27 2024-theGBJournal| Nigeria’s fixed income and money market had a contrasting day on Tuesday with bears and absence of significant funding pressuring the markets.
The Nigerian Treasury bills secondary market traded with mixed sentiments, albeit with a bullish bias, as the average yield pared by 1bp to 16.6%.
Across the curve, the average yield was unchanged at the short end but contracted at the mid (-1bp) and long (-1bp) segments, following mild interests in the 177DTM (-1bp) and 345DTM (-1bp) bills, respectively.
Elsewhere, the average yield expanded slightly by 1bp to 18.1% in the OMO segment.
Meanwhile, proceedings in the Nigerian Treasury bonds secondary market were bearish, as the average yield expanded by 2bps to 16.8%.
Across the benchmark curve, the average yield closed flat at the short end but expanded at the mid (+7bps) and long (+1bp) segments as investors sold off the JUN-2033 (+28bps) and JUN-2053 (+9bps) bonds, respectively.
The naira depreciated by 2.0% to N1,615.94/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
At the money market, the overnight lending rate expanded by 246bps to 26.7%, in the absence of any significant funding pressure on the system.
Meanwhile, for the fourth consecutive week, last week, the exchange rate at the NAFEM window closed negative, losing 7.66% to close at N1,665.50/US$1.
Similarly, in the parallel market, the Naira fell 7.78% to settle at N1,800.00/US$1. Consequently, the gap between the official and street markets widened to 8.08%.
Year-to-date, the Naira has fallen 45.54% against the US dollar on the back of continued demand pressure.
The CBN’s published foreign exchange reserve closed the week at US$33.45bn, increasing by 0.46%.
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