MON, JULY 24 2023-theGBJournal |Nigeria Treasury bills secondary market were bullish Monday, ahead of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) meeting (24th-25th) to discuss its monetary policy decision and interest rate direction.
The the average yield contracted by 2bps to 4.3%, and across the curve, the average yield closed flat at the short and mid segments but contracted at the long (-4bps) end following buying interest in the 339DTM (-23bps) bill.
The MPC meeting is the fourth meeting of the year, and analysts think the focus at this meeting will be setting a new tone for monetary policy direction over the next few months, in line with the monetary policy and FX reforms since 29 May.
Meanwhile, the FGN bonds secondary market closed on a bullish note as well, as the average yield contracted by 7bps to 12.7%.
Across the benchmark curve, the average yield declined at the short (-5bps) and long (-9bps) ends as market participants demanded the FEB-2028 (-16bps) and APR-2037 (-26bps) bonds, respectively.
Conversely, the average yield closed flat at the mid-segment.
The overnight lending rate contracted by 117bps to 19.8%, in the absence of any significant inflow into the system.
The naira depreciated by 1.8% to NGN792.04/USD at the I&E window.
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