The overnight lending rate fell by 25 bps to 3.00%, from 3.25% recorded in the previous session, as market liquidity remained buoyant.
Proceedings were bullish in the NTB market, benefiting from high system liquidity, as average yield slumped by 3 bps to 11.03%. Buy sentiment was spread across the short (-5 bps) and mid (-8 bps) ends of the curve, with yields on the 9DTM (-57 bps) and 149DTM (-63 bps) bills moderating significantly.
On the flip side, yields grew across the long (+3 bps) segment, largely driven selloffs in the 212DTM (+45 bps) bill.
The bond market traded on a slightly bearish note, as market players sold off ahead of tomorrow’s primary auction. Consequently, average yield rose by 8 bps to 12.68%, InvestAdvocate.
Yields expanded across all ends of the curve – short (+12 bps), mid (+4 bps), and long (+8 bps) – driven by selloffs of the FEB-2020 (+57 bps), MAR-2027 (+6 bps), and APR-2037 (+12 bps) bonds, respectively.
At Wednesday’s auction, the DMO plans to offer NGN90 billion – NGN30 billion of the APR-2023 (new issue), NGN30 billion of the MAR-2025 (re-opening) and NGN30 billion of the FEB 2028 (re-opening) – in bonds to investors.
