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MARKETS: Treasury yields expand 14bps to 4.3% as investors take profit again, Naira gains

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Bond secondary market

WED, 09 DEC, 2020-theGBJournal- The Treasury bonds secondary market remained bearish, as average yield expanded by 14bps to 4.3%.

Across the curve, average yield expanded at the short (+62bps) and mid (+6bps) segments, due to profit-taking on the MAR-2025 (+216bps) and FEB-2028 (+25bps) bonds, respectively.

Conversely, average yield contracted at the long (-23bps) end, following buying interest in the APR-2037 (-122bps) bond.

The overnight lending rate declined by 41bps to 0.9%, as system liquidity – estimated at NGN572.07 billion – remained healthy.

The NTB secondary market traded with bearish sentiments, as the average yield expanded by 32bps to 0.1%. Across the curve, average yield expanded at the short (+34bps), mid (+34bps) and long (+30bps) segments, following an upward repricing of all the instruments – save for the 309DTM (-13bps) instrument – in the respective segments. Similarly, average yield expanded by 10bps to 0.5% at the OMO secondary market.

Meanwhile, the naira strengthened by 0.1% and 1.1% to NGN394.67/USD and NGN483.00/USD at the I&E window and parallel market, respectively.

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