TUE 16 MARCH, 2021-theGBJournal- The naira depreciated by 0.2% to NGN409.75/USD at the I&E window but remained flat at NGN485.00/USD in the parallel market.
The overnight lending rate contracted by 225bps to 10.5%, as inflows from OMO bills maturities (NGN143.35 billion) bolstered financial system liquidity.
Activities at the NTB secondary market turned bearish, as the average yield expanded by 30bps to 3.1%. The average yield was flat at the short and mid segments across the curve but expanded at the long (+60bps) end as market participants sold off the 198-DTM (+118bps) bill. Similarly, the average yield increased by 25bps to 6.9% at the OMO secondary market.
Trading in the Treasury bonds secondary market was mixed, as the average yield was flat at 9.3%. The average yield was flat at the short and long ends across the benchmark curve but expanded slightly at the mid (+2bps) segment following profit-taking activities off the MAR-2027 (+8bps) bond.