WED 17 NOV, 2021-theGBJournal- Trading in the Treasury bond secondary market was also quite as investors await the result of today’s primary auction. Thus, the average yield closed flat at 11.2%. Across the benchmark curve, the average yield expanded at the short (+2bp) end due to sell-offs of the APR-2023 (+9bps) bond. At the auction, the DMO offered instruments worth NGN150.00 billion to investors through re-openings of the 12.50% FGN JAN 2026 (Bid-to-offer: 1.0x; Stop rate: 11.65%), 16.25% APR 2037 (Bid-to-offer: 0.9x; Stop rate: 12.95%) and 12.98% FGN MAR 2050 (Bid-to-offer: 3.2x; Stop rate: 13.30%) with a total subscription of NGN259.23 billion recorded.
The overnight lending rate declined by 5bps to 14.0% in the absence of any significant funding pressures on the system.
The NTB secondary market traded quietly, albeit with bullish bias, as the average yield pared by 1bp to 5.1%. Across the benchmark curve, the average yield was flat at the short and mid segments but contracted at the long (-2bps) end as investors demanded the 295DTM (-22bps) bill. Elsewhere, the average yield at the OMO segment expanded by 5bps to 5.5%.
At the currency market, the naira stayed flat at NGN415.10/USD at the I&E window.
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