WED, 25 NOV, 2020-theGBJournal- The Treasury bonds secondary market remained bullish, as the average yield contracted by 7bps to 3.9%.
Across the curve, average yield declined at the short (-22bps) and mid (-1bp) segments, following demand for the JAN-2022 (-75bps) and APR-2029 (-2bps) bonds, respectively, while it expanded slightly at the long (+1bp) end, due to profit-taking on the APR-2049 (+11bps) bond.
The overnight lending rate contracted by 56bps to 0.8%, in the absence of any significant outflows from the system.
Trading in the NTB secondary market was mixed, with bullish bias, as market participants focused on today’s NTB PMA. Thus, average yield pared by 1bp to 0.1%. At the PMA, the CBN offered bills worth NGN150.60 billion with allotments of NGN20.37 billion of the 91-day, NGN19.16 billion of the 182-day and NGN111.07 billion of the 364-day – at respective stop rates of 0.02% (previously 0.004%), 0.09% (previously 0.15%), and 0.15% (previously 0.30%). At the OMO secondary market, average yield was unchanged at 0.2%.
The naira weakened by 2.0% and 0.8% to NGN393.25/USD and NGN487.00/USD at the I&E window and parallel market, respectively.-With Cordros Research
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