Home Money Markets Wrap: Local currency unchanged at N505/US$, bond secondary market was mixed...

Markets Wrap: Local currency unchanged at N505/US$, bond secondary market was mixed and OVN rate contracts by 550bps to 15.0%

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MON 12 JULY, 2021-theGBJournal- The naira appreciated by 0.1% to NGN411.50 at the I&E window but stayed flat at NGN505.00/USD in the parallel market.

At the money market, the overnight lending rate contracted by 550bps to 15.0%, in the absence of any significant funding pressures on the system.

The NTB secondary market traded flat, as the average yield was unchanged at 6.9%. Elsewhere, the average yield at the OMO segment contracted by 12bps to 9.8%.

Trading in the Treasury bond secondary market was mixed, as the average yield stayed flat at 11.5%. Across the benchmark curve, average yield contracted at the short (-4bps) end due to demand for the APR-2023 (-25bps) but expanded at the mid (+6bps) segment due to sell-off of the MAR-2027 (+17bps); the long end was flat.

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