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Treasury yield contracts at short and long ends on demand for Mar 2025 and APR 2049 bonds, naira sells at N485/$ in the parallel market

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THUR 18 MARCH, 2021-theGBJournal- The naira appreciated slightly at the I&E window by 2bps to NGN409.67/USD but stayed flat at NGN485.00/USD in the parallel market.

The overnight lending rate contracted by 75bps to 12.8%, following inflows from FGN bond coupon payments (NGN41.10 billion).

Trading in the NTB secondary market was bearish, as the average yield expanded by 20bps to 3.3%. Across the curve, average yield expanded at the short (+46bps) and mid (+29bps) segments, as market participant sold off the 84-DTM (+132bps) and 104-DTM (+177bps) bills, respectively; the long end was flat. Similarly, the OMO segment’s average yield expanded slightly by 1bp to 7.0%.

Trading in the Treasury bond secondary market was mixed, as the average yield stayed flat at 9.4%. Across the benchmark curve, average yield contracted at the short (-6bps) and long (-1bp) ends, following demand for the MAR-2025 (-155bps) and APR-2049 (-35bps) bonds, respectively. On the other hand, the average yield expanded at the mid (+13bps) segment following sell-off of the APR-2029 (+25bps) bond.-With Cordros Research.

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