…At the NTB secondary market, trade was bullish as the average yield declined by 4bps to 15.3%.
MON, FEB 12 2024-theGBJournal| The naira depreciated by 4.2% to N1,534.39/US$ at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, reinforcing the need to improve the supply of US dollars into the market.
The performance of the local currency leaves investors guessing whether recent reforms will attract foreign portfolio investors and encourage other flows.
Recall that the currency fell 2.38% against the US dollar closing at N1,468.97/US$ at the NAFEM window last week.
In the parallel market, the exchange rate at one point reached N1,505/US$1 but eventually settled at N1,500/US$1, losing 4.33%.
Meanwhile, the FGN bond secondary market resumed the week on bearish note, as the average yield expanded by 6bps to 15.6%.
Across the benchmark curve, the average yield decreased at the short (-3bps) end following bargain hunting in the MAR-2024 (-18bps) bond but advanced at the mid (+42bps) segment as investors sold off the JUN-2033 (+125bps) bond.
Elsewhere, the average yield closed flat at the long end.
At the NTB secondary market, trade was bullish as the average yield declined by 4bps to 15.3%.
Across the curve, the average yield dipped across the short (-1bp), mid (-2bps) and long (-6bps) segments, driven by demand for the 87DTM (-2bps), 178DTM (-2bps) and 360DTM (-47bps) bills, respectively. Similarly, the average yield contracted by 3bps to 17.9% in the OMO segment.
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