THUR, OCT 19 2023-theGBJournal| The naira appreciated by 1.0% to N782.68/USD at the Nigerian Foreign Exchange Market (NFEM) as the exchange rate between the Naira and the US dollar continues to experience significant volatility.
The Naira’s depreciation has continued to be influenced by a confluence of factors, including liquidity constraints, imbalanced supply and demand dynamics, and a critical
revelation concerning Nigeria’s FX reserves.
Meanwhile, activities in the Treasury bills secondary market were bearish, as the average yield expanded by 21bps to 6.7%. Across the curve, the average yield closed flat at the short end but advanced at the mid (+10bps) and long (+35bps) segments, as market participants sold off the 175DTM (+44bps) and 329DTM (+94bps) bills, respectively. Elsewhere, the average yield remained at 12.1% in the OMO segment.
Proceedings in the Treasury bond secondary market were bullish, as the average yield declined by 2bps to 14.4%. Across the benchmark curve, the average yield contracted at the short (-6bps) and mid (-2bps) segments, as investors showed interest in the MAR-2025 (-36bps) and APR-2029 (-4bps) bonds, respectively. Meanwhile, the average yield was unchanged at the long end.
The overnight lending rate contracted by 30bps to 1.5% in the absence of any significant inflows into the system.
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