Bond yields rose significantly higher by c.20bps, largely driven by offshore selloffs especially on the 2026 and 2037 bonds.
Market analysts expect the long end of the curve to remain pressured as market players remain significantly risk off on the longer duration bonds.
Barring continued offshore selloff, renewed buying interests are anticipated from local clients on the medium tenured bonds at c.13.50 – 13.70% levels.
The Treasury bills market traded on a relatively flat note, with yields ticking slightly higher by c.3bps on average.
Market witnessed relatively weaker subscriptions at the NTB PMA Auction today, which we presume was mostly filled from non-competitive client orders, as market players remain relatively unattracted by the lower PMA rates.
The auction stop rates however printed marginally lower by c.20bps on the 91 and 182-day bills, while the 364-day remained unchanged at 11.50% after being undersubscribed by c.N27bn.
Market expects yields to trend slightly lower Friday, as market players look to re-invest c.N377bn Maturing OMO bills.
The OBB and OVN rates rose higher to 12.50% and 14.25%, with system liquidity published lower at c.N200bn from c.N500bn previously.
Market expect rates to trend slightly lower tomorrow due to the expected inflows from OMO T-bill maturities.
The Nigeria Sovereigns recovered slightly from the intense selloff witnessed in the previous session. Yields retraced by c.20bps, having risen by as much as 60bps in the previous session. The 2047s were the most lifted, and are now at c.8.50%, having traded as high as c.8.70% in the previous session.
