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Markets Wrap: Treasury bond ticks lower, trading at 6.6%, NTB secondary market traded with bullish sentiment, Naira falls 0.4% at parallel Market

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MON 28 JUNE, 2021-theGBJournal- The naira appreciated by 0.1% to NGN411.28/USD at the I&E window but depreciated by 0.4% to NGN502.00/USD in the parallel market. The CBN Official rate closed N410.17/US.

The overnight lending rate contracted by 375bps to 19.3% as there were no significant funding pressures on the system.

The NTB secondary market traded with bullish sentiment, as the average yield contracted by 33bps to 6.6%. Across the curve, the average yield was flat at the short end but contracted at the mid (-32bps) and long (-53bps) segments following demand for the 199DTM (-55bps) and 304DTM (-106bps) bills, respectively.

Elsewhere, the OMO segment’s average yield expanded by 12bps to 9.9%.

The Treasury bond secondary market activity was bullish, as the average yield contracted by 6bps to 11.8%. Across the benchmark curve, the average yield contracted at the short (-6bps), mid (-1bp), and long (-9bps) segments due to demand for the JAN-2022 (-35bps), MAR-2027 (-30bps) and MAR-2050 (-35bps) bonds, respectively.

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