TUE, 08 DEC, 2020-theGBJournal- The Treasury bonds secondary market remained bearish following Monday’s bearish sentiments.
Average yield expanded by 11bps to 4.1% and across the curve, average yield expanded at the mid (+8bps) and long (+23bps) segments, due to profit-taking on the APR-2029 (+18bps) and JUL-2045 (+126bps) bonds, respectively. Conversely, average yield pared at the short (-1bp) end, following buying interest in the JAN-2022 (-3bps) bond.
The overnight lending rate contracted by 34bps to 1.3%, as system liquidity – estimated at NGN530.90 billion – was buoyed by inflows from OMO maturities (NGN294.12 billion).
The NTB secondary market continued to trade with mixed sentiments, as the average yield on the day was flat at 0.1%. We note that market participants have shifted their focus to tomorrow’s PMA, where the CBN will be rolling over NGN50.93 billion worth of maturities. Elsewhere, average yield expanded by 10bps to 0.4% at the OMO secondary market.
Meanwhile, at the FX market, the naira was flat at NGN395.00/USD at the I&E window but weakened by 0.2% to NGN483.00/USD in the parallel market.
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