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MARKETS: Treasury bonds average yield stayed flat at 3.9% as interest focused on 2026 and 2027 maturities, paucity of funds persist at FX market

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THUR, 26 NOV, 2020-theGBJournal-The Treasury bonds secondary market was mixed, albeit with a bearish tilt, as average yield was flat at 3.9%. Across the curve, average yield expanded at the short (+2bps) and mid (+11bps) segments, following profit-taking on the JAN-2026 (+48bps) and MAR-2027 (+29bps) bonds, respectively. Conversely, it declined at the long (-7bps) end, due to demand for the MAR-2050 (-25bps) bond.

Trading in the NTB secondary market was mixed, following reduced activity in the space. Thus, average yield was unchanged at 0.1%. Similarly, average yield at the OMO secondary market was flat at 0.2%.

The overnight lending rate expanded by 25bps to 1.0%, following outflows from the system for CBN’s weekly OMO auction.

Meanwhile, the naira traded flat at NGN393.25/USD today at the I&E window underscoring the persisting paucity of funds during trading session, continuing from depreciation of N7.75 against the dollar on Wednesday. The paucity of funds equally robbed off on the parallel market which depreciated further by 1.4% to NGN494.00/USD.

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