After the weekend sell-off, bond investors are buying bonds again in the local government secondary market ahead of tomorrow’s primary market auction by the Central Bank of Nigeria (CBN).
Real liquidity in the financial system has pushed interest rates on short-term instruments higher. However, market investors are beginning to consider the multiple impacts of higher inflation and a weaker local currency on naira assets.
Last week, Nigerian treasury bills began a notable decline, with the average benchmark yield rising to 6.46% on Monday. However, the market remained relatively calm with minimal movements for the rest of the week. Overall, Futureview analysts told investors that the average benchmark yield this week rose 480 basis points (bps) to 6.22%.
Short-term interest rates fell to near record lows on Monday as local depository banks withdrew from CBN’s existing facilities to improve its liquidity profile.
Open repo and overnight rates fell to 2.00% and 2.80% respectively from previous levels of 2.90% and 3.40% respectively. analysts said in a note. >> Nigerian government bond yields rise to $7
At the close of trading on Monday, the average secondary market bond yield fell 11 basis points to 6.3% as market participants began to pay attention to long-term yields on government bonds. Cordros Capital Limited’s investor notes found that the average yield along the curve flattened out in the short- and medium-term segments, but after the 241-day maturity interest (-187 basis points), the long-term portion (-19 basis points) points). ) interval. #T-Bill rises after significant market liquidity and lower yields
