…the Treasury bond secondary market traded on a calm note as investors awaited the results of the bond auction.
MON NOV 18 2024-theGBJournal| The naira depreciated by 2.3% to N1,690.37/USD in the Nigerian Autonomous Foreign Exchange Market (NAFEM) as FX demand continues to outstrip supply.
The depreciation continued despite Central Bank of Nigeria’s (CBN) continued market interventions. Weak autonomous FX inflows has continued to dampen the market also.
Recall, the naira closed up Friday by 1.6% w/w to N1,652.25/USD at NAFEM following the CBN’s intervention, selling c. USD144.0 million to authorized dealers.
The total turnover (as of 14 November) at the market declined by 52.2% WTD to USD1.14 billion, with trades consummated within the N1,609.00/USD – N1,698.50/USD range.
In the forwards market, the naira rates remained flat across the 1-month (N1,722.70/USD) and 3-month (N1,793.40/USD) contracts, while it expanded across the 6-month (+0.1% to N1,902.65/USD) and 1-year (+0.1% to N2,129.07/USD) contracts.
At the fixed income market, proceedings in the Treasury bills secondary market were bullish, as the average yield declined by 5bps to 24.1%.
Across the curve, the average yield declined at the short (-4bps), mid (-5bps), and long (-5bps) segments following demand for the 80DTM (-5bps), 171DTM (-5bps) and 290DTM (-6bps) bills, respectively.
Similarly, the average yield declined by 3bps to 26.4% in the OMO segment.
Elsewhere, the Treasury bond secondary market traded on a calm note as investors awaited the results of the bond auction.
As a result, the average yield inched higher by 1bp to 19.2%. Across the benchmark curve, the average yield increased at the short (+4bps) end, driven by sell pressures on the MAR-2025 (+14bps) bond. The average yield closed flat at the mid and long segments.
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