The Nigerian bond market traded slightly flat, with yields ticking slightly growing by c.1bp due to slight sell on the 2036s and 2027s towards close of trading.
Yields in the T-bills Space moderated further downwards by c.10bps as market players began to price in their OMO auction expectations for tomorrow, with the auction largely expected to clear at +5bps (11.10/12.20) based on prior trends.
The PMA auction by the CBN was fairly subscribed, mostly from non-competitive client bids. The auction stop rates consequently cleared at about 150bps below their secondary market levels.
We expect a relatively quiet trading session tomorrow, as market players shift focus to the OMO T-bill auction, which we do not expect to be heavily subscribed due to the liquidity strain in the market .
The OBB and Overnight rates surged to 23.33% and 24.67%, as system liquidity still remained tight at c.N63bn negative.
The Nigeria Sovereigns Bonds remained slightly bearish with yields inching slightly higher by c.3bps on average. The 27s and 47s were the most traded and lost about –0.15pt on average.