Midweek trading on Nigeria’s bonds was comparatively flat, but with a positive slant, as investors and fixed income dealers turned their focus to the apex bank’s main market auction.
According to analyst comments, this led to relatively stable FGN Bond prices for the majority of maturities even though the average secondary market yield decreased by two basis points to 14.30%. As investors flocked to the MAR-2027 (-7bps) and MAR-2035 (-33bps) bonds, respectively, the average yield dropped at the short (-2bps) and long (-5bps) ends of the benchmark curve.
The average yield closed level in the mid-segment, according to trader comments. Clients of Cowry Asset Management were informed in a market note that the rates on the 10-year and 15-year bonds fell to 13.95% and 14.43%, respectively, from 14.03% and 14.75%, respectively.
According to Cowry Asset Management, the yields on the 20-year and 30-year FGN bonds stayed steady at 15.88% and 14.72%, respectively, although there was a pause in each yield line after purchase interest.
Amid persistent pessimistic sentiment, the value of the FGN Eurobond declined for the majority of maturities monitored by Cowry Asset Limited analysts. The average yield increased by 10 basis points to 11.82% as a result.
The Naira lost ground against the US dollar in the foreign exchange (FX) market, falling from N445.80 to N445.83 as demand for foreign cash remained mostly stable. Bond, T-Bill, and OMO Yields End Flat as the Naira Rises
Because of the financial system’s solid liquidity, short-term rates are declining further in the money market. The Open Repo (OPR) and the Overnight Lending Rate (OVN), according to data from FMDQ Exchange, have shrunk to 10.00% and 10.38%, respectively.
Specifically, given the absence of constraints on liquidity in the financial sector today, the overnight lending rate decreased by 50 basis points to 10.38%. In that regard, trading in the secondary market for Nigerian Treasury Bills remained sluggish, with little activity observed despite falling spot rates on CBN auction.
Thus, the average yield remained unchanged at 11.0% as the spot rate on 364-day bills fell to 13.05% and the 182-day bills dropped to 8% at the primary market auction today while the 91-day bill remained flattish.
Across the curve, Cordros Capital analysts stated that the average yield closed flat at the short and mid segments but pared at the long (-1bp) end following buying interest in the 329-day to maturity (-1bp) bill.
Also, the average yield was unchanged at 10.1% in the OMO bills segment. CBN auction results showed that primary market stop rates for 182 and 364-day T-bills declined to 8.00% (from 8.05%) and 13.05% (from 14.84%), respectively. #Nigeria’s Bond Trades Flat, Naira Falls Slightly
