Home Money Markets Wrap: Overnight lending rate expands to 11.8% on N17 billion outflows...

Markets Wrap: Overnight lending rate expands to 11.8% on N17 billion outflows for CBN’s weekly OMO auction, Naira appreciates to N411.35/$

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… Treasury Bill average yield expands to 11.5%

THUR 08 JULY, 2021-theGBJournal- The naira appreciated by 0.1% to NGN411.25/USD at the I&E window but stayed flat at NGN503.00/USD in the parallel market.

Meanwhile, the overnight lending rate expanded by 125bps to 11.8% following outflows for CBN’s weekly OMO auction (NGN17.00 billion).

Trading in the NTB secondary market was mixed with a bearish tilt, as the average yield expanded by 2bps to 6.8%. Across the benchmark curve, the average yield was flat at the short and mid segments but expanded at the long (+5bps) end due to sell-off of the 296DTM (+53bps) bill. Elsewhere, the average yield at the OMO segment contracted by 5bps to 9.9%.

The Treasury bond secondary market was bearish, as the average yield expanded by 2bps to 11.5%. Across the benchmark curve, the average yield expanded at the short (+2bps) and mid (+9bps) segments due to sell-offs of the JAN-2026 (+10bps) and APR-2029 (+18bps) bonds, respectively. Conversely, the average yield pared at the long (-2bps) due to demand for the JUL-2034 (-10bps) bond.-With Cordros Research

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