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Markets Wrap: Naira flat, overnight lending rate expanded by 400bps to 19.0%, bonds average yield expands by 11bps to 11.6%

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TUE 13 JULY, 2021-theGBJournal- Trading in the Treasury bond secondary market was bearish, as the average yield expanded by 11bps to 11.6%. Across the benchmark curve, average yield expanded at the short (+4bps) and long (+24bps) ends due to sell-offs of the APR-2023 (+36bps) and MAR-2036 (+36bps) bonds, respectively; the mid-segment closed flat.

The naira depreciated by 0.1% to NGN411.75/USD at the I&E window but stayed flat at NGN505.00/USD in the parallel market.

The overnight lending rate expanded by 400bps to 19.0%, as funding pressures outweighed inflows from OMO maturities (NGN10.00 billion).

The NTB secondary market was bullish, as the average yield contracted by 3bps to 6.9%. Across the benchmark curve, average yield contracted at the long (-5bps) end due to demand for the 317DTM (-30bps) bill but stayed flat at the short and mid segments. Elsewhere, the average yield at the OMO segment remained unchanged at 9.8%.-With Cordros Research

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