Home Money MARKETS BRIEF: Naira gains 0.1% to N393.33/US$, treasury bonds declines 10bps to...

MARKETS BRIEF: Naira gains 0.1% to N393.33/US$, treasury bonds declines 10bps to 6.6% with demand focused on FEB-2028 and APR-2049 bonds, respectively

259
0

TUE 19 JAN, 2021-theGBJournal- The local currency, the Naira strengthened today by 0.1% to N393.33/US$ at the I&E window following Monday’s 0.2% gain. The currency however stayed unmoved at the parallel market at N475.00/US$. The Central Bank of Nigeria (CBN) quoted rate/$ as at Monday was N379/$.

At the Money market, the overnight lending rate declined by 33bps to 0.5%, as inflows into the system from OMO maturities (NGN226.31 billion) outweighed outflows for CBN’s FX Invisibles & SMEs auction.

Trading in the NTB secondary market was mixed, as average yield was flat at 0.4%. Across the curve, average yield contracted at the mid (-6bps) segment, following buying interest in the 114DTM (-20bps) instrument, but was flat at the short and long ends. At the OMO segment, average yield expanded slightly by 2bps to 0.7%.

The Treasury bonds secondary market turned bullish in today’s session, as average yield declined by 10bps to 6.6%. Across the curve, average yield expanded at the short (+4bps) end, following sell-off of the JAN-2026 (+19bps) bond, and declined at the mid (-6bps) and long (-23bps) segments, due to demand for the FEB-2028 (-27bps) and APR-2049 (-146bps) bonds, respectively.-With Cordros Research

Twitter-@theGBJournal|email: info@govandbusinessjournal.com.ng