The Bond market traded on a mixed note, with some demand on the shorter end of the curve (2019s) offset by some sell on the longer end (34s & 36s).
Consequently, yields sored by c.2bps avg, as market players remained relatively risk off especially on the longer tenured maturities. We expect yields to remain weak in the near term, largely due to weakening bids on the longer end of the curve.
The T-bills Market traded on a relatively quiet note, with yields compressing slightly by c.5bps on average. This was as the CBN intervened in the market via a total OMO sale of c.N190bn.
This was however significantly lower than the total amount offered (N400bn) and the total amount that matured (N327bn).
We expect yields to remain stable tomorrow, barring a significant liquidity Mop up via a further OMO sale by the CBN.
The OBB and OVN rates remained relatively stable at 3.00% and 3.58% respectively. This was as system liquidity remained significantly buoyant at c.N580bn long, following inflows from OMO T-bill maturities, which more than offset outflows from Friday’s OMO sale.
The Nigerian Sovereigns bonds remained bearish with yields trending higher by c.4bps on average. We witnessed the most selloff on the 2032s and 2047s which lost –50pt and –0.35pt respectively.
