TUE, 06 OCT, 2020-theGBJournal-The Central Bank of Nigeria (CBN) official rate closed flat at N380/US$ Tuesday while Pounds Sterling sold at N492.442. At the NAFEX the currency weakened -0.05% to close N386.42/US$.
At the Investors’ and Exporters’ (I&E) window, activity was flat with few transactions executed. The Naira closed at NGN386.00/US$, while it appreciated by 0.4% to NGN458.00/USD in the parallel market.
Money Market & Fixed Income
The overnight lending rate declined by 6bps to 1.5%, in the absence of any significant outflow from the system.
Trading in the NTB secondary market was bullish, as average yield declined by 37bps to 1.5%. Across the curve, average yield contracted at the short (-9bps), mid (-6bps) and long (-71bps) segments, due to demand for the 37DTM (-16bps), 100DTM (-13bps) and 219DTM (-84bps) instruments, respectively. Elsewhere, average yield was flat at 1.7% at the OMO secondary market.
At the Treasury bond secondary market, trading was bullish, as average yield declined by 5bps to 6.7%. Across the curve, average yield at the short (-31bps) and mid (-26bps) segments contracted, due to demand for the MAR-2025 (-106bps) and APR-2029 (-58bps) bonds, respectively, while they expanded at the long (+30bps) end, following sell-off of the MAR-2050 (+88bps) bond.
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