Yields On T-Bills, OMO Mixed as Naira Rises

LBS Discloses FG's Targets With Naira Redesigning

In spite of light trading activity in the secondary market on Wednesday, the average yield on Nigerian Treasury notes remained unchanged. According to information from the fixed income market, however, investors in the local debt capital market increased demand for open market operations bills (OMO), which decreased yield.

The exchange rate increased to N461.35 per US dollar in the window for investors and exporters on the foreign currency (FX) market due to demand. The official window’s currency rate recovery today was aided by a drop in demand for foreign currencies midweek following the 2023 presidential election triumph.

Short-term benchmark rates in the money market increased as a result of pressures on liquidity levels in the banking system. The local banks started to demand greater rates on their cash balances, which caused the average interbank rate to spike.

The open repo rate (OPR) remained constant at 10.50% according to data from the FMDQ Exchange website, but the overnight lending rate (OVN) decreased by 2 basis points to 10.81% (from 10.83%).

MarketForces Africa was informed by analysts that the average yield ended at 4%, unchanged. The category for OMO bills had a 74 basis point decrease in average yield, to 3.0%.

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