MON SEPT 02 2024-theGBJournal| Sentiment in the secondary fixed-income market remained bullish Monday, as investors continued to express interest in instruments across all tenor buckets, particularly the Treasury Bill market.
As a result, average yields declined across the board.
Treasury bills average yield contracted by 11bps to 21.1%. Across the curve, the average yield dipped at the short (-3bps), mid (-4bps), and long (-20bps) segments driven by bargain hunting in the 80DTM (-3bps), 157DTM (-5bps), and 206DTM (-113bps) bills, respectively.
Similarly, the average yield declined by 4bps to 22.8% in the OMO segment.
Likewise, the FGN bonds secondary market traded with bullish sentiments, as the average yield contracted by 13bps to 18.5%.
Across the benchmark curve, the average yield declined at the short (-12bps), mid (-10bps), and long (-15bps) segments due to demand for the JAN-2026 (-32bps), JUN-2033 (-25bps), and APR-2037 (-95bps) bonds, respectively.
At the money market, the overnight lending rate expanded by 224bps to 22.3% in the absence of any significant funding pressure on the system.
Meanwhile, the naira rebounded by 0.8% to N1,585.77/USD in the Nigerian Autonomous Foreign Exchange Market (NAFEM), following 1.78% overall loss it suffered against the greenback last week.
By the end last week, year-to-date depreciation rose by 43.25% up from 42.23% the previous week.
Similarly, the parallel market rate fell by 1.22%, ending the week at N1,640.00/US$1.
Total inflow through the NAFEM window totaled US$403.00 million, largely supported by the non-bank corporates and the exporters/importers window.
These flows were insufficient to have a significant impact as US dollar demand continues to drive the exchange rate down.
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