WED 09 FEB, 2022-theGBJournal- The overnight lending rate declined by 242bps to 2.8% in the absence of any significant funding pressure on the system.
Trading in the NTB secondary market remained bullish, as the average yield contracted by 7bps to 4.2%. Across the NTB curve, the average yield contracted at the short (-24bps) end following investors’ demand for the 50DTM (-141bps) bill; but closed flat at the mid and long segments.
At the NTB auction, the CBN offered NGN98.01 billion for sale with a total subscription of NGN446.31 billion. Accordingly, the CBN allotted NGN1.91 billion for the 91-day, NGN1.82 billion for the 182-day and NGN211.23 billion for the 364-day bills – at respective stop rates of 2.48%, (previously 2.48%), 3.30% (previously 3.30%), and 5.20% (previously 5.40%). Elsewhere, the average yield expanded by 16bps to 5.6% in the OMO segment.
The Treasury bond secondary market traded quietly, as the average yield was unchanged at 11.5%. Across the benchmark curve, the average yield expanded slightly at the short (+1bp) end following profit-taking on the JAN-2026 (+5bps) bond but contracted at the long (-1bp) end due to the demand for the MAR-2036 (-4bps) bond.
Conversely, the average yield remained flat at the mid segment.
At currency market, the naira appreciated by 0.2% to NGN416.00/USD at the I&E window.
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