The Bond market opened the new week in the red, with yields rising higher by c.14bps, following concerns of continued selloff from offshore investors which pushed bid prices significantly lower, despite the relatively scanty volumes traded.
The market saw the most selloff on the 2027s and 2034s, which soared by as much as 7bps (-0.40pt). We expect yields to moderate slightly in the near term, with slight pullback in yields expected at these levels.
The T-bills market traded on a slightly bullish note with yields compressing further by c.5bps down to 13.00%.
This was as market players picked on most of the higher yielding bills in the market. We expect yields to maintain a slight downtrend, ahead of the next OMO maturity on Thursday.
The OBB and OVN rates shot higher by c.10pct to 16.50% and 17.42% respectively. This was due to provisioning by banks for their Wholesale FX bids which put pressure on system liquidity which opened at c.N66bn long.
The Interbank rate remained stable at its previous rate of N305.85/$, with the CBN’s External reserves recovering slightly by 0.02% to $47.79bn.
The NAFEX rate depreciated by 0.10% to N361.47/$. Rates in the Cash market remained stable atN363.00/$, while rates in the Transfer market appreciated by 0.27% to N365.00/$.
The Nigeria Sovereign bonds traded on a bearish note, with yields rising higher by c.9bps. We witnessed very few trades, mostly on the 2022s, 2030s and 2032s, as investors remained net sellers of bond with very little interests across the SSA space.
