The overnight lending rate depreciated by 192 bps to 2.50%, amidst buoyant liquidity. OMO and treasury bills worth N206.37 billion and N99.21 billion will mature into the system on Thursday.
Proceedings in the NTB market were mixed, albeit with a bearish bias, as average yield recorded a marginal increase (+ 1 bp) to 12.62%.
The short (+5 bps) and long (+4 bps) ends of the curve recorded yield expansions, while yield contracted at the mid (-10 bps) segment. Notable bills include the 22DTM (+85 bps), 288DTM (+47 bps), and 169DTM (-46 bps) respectively.
At Wednesday’s NTB auction, NGN4.96 billion, NGN24.80 billion, and NGN19.84 billion of the 91-day, 182-day, and 364-day bills were allotted.
The auction was 2.08x oversubscribed, with yield remaining unchanged on the 91-day (10.00%), closing lower on the 182-day (10.30%; previously 10.50%), and higher on the 364-day (11.00%; previously 10.70%) bills.
Bullish sentiments persisted in the bond market, as average yield moderated by 8 bps to 13.19%. Yield contracted at the short (-13 bps) and mid (-14 bps) ends of the curve, following demand for the JUN-2019 (-84 bps) and MAR-2024 (-25 bps) bonds. Conversely, yield at the long (+1 bp) segment expanded following a selloff of the JUL-2034 (+9 bps) bond.
