Naira Weakens At I&E, Remains N460.00 At Parallel market
Nigerian Naira value on Tuesday, dropped at the foreign Exchange (FX) Investment and export (I&E) window by 0.1 percent to NGN386.50/USD while it closed flat at the parallel market at NGN460.00/USD.
Meanwhile, on Monday, the naira strengthened at the I&E window by 0.1 percent to NGN386.00/USD while it was flat at the parallel market at NGN460.00/USD.
In the money market & fixed income investment segment, the overnight lending rate which contracted on Monday, expanded on Tuesday by 33bps to 16.0 percent, in the absence of any significant flows into the system.
Cordros Securities reported that the Treasury bills secondary market were bullish, as average yield expanded by 40bps to 2.2 percent. Across the curve, yield contracted at the mid-segment by -13bps, as market participants demanded the 198DTM (-62bps) instrument, while they expanded at the long segment by +139bps following a sell-off of the 345-DTM bill (+296bps); yield at the short end was flat. Similarly, average yield expanded by 4bps to 5.1 percent at the OMO secondary market.
Trading in the Treasury bond secondary market was bullish on Tuesday, as average yield declined by 8bps to 8.4 percent. Across the curve, yield contracted at the short (-20bps) and mid-segment by -2bps, as investors demanded the APR-2023 bond (-35bps) and FEB-2028 bond (-7bps), respectively; yield at the long end was flat.
It will be recalled that on Monday, the overnight lending rate contracted by 43bps to 15.7 percent, as system liquidity remains tight.
The Treasury bills secondary market was bullish, as average yield contracted by 8bps to 2.2 percent. Across the curve, yield contracted at the mid-segment by -21bps, as market participants demanded the 122DTM instrument which contracted by -60bps; yields at the short and long ends were flat. Conversely, average yield expanded slightly by 1bp to 5.0% at the OMO secondary market.
Trading in the Treasury bond secondary market was bullish, as average yield declined by 14bps to 8.5%. Across the curve, yield expanded at the short end by 1bp, as investors sold off the JUL-2021 (+16bps) bond, while yield contracted at the mid (-44bps) and long (-9bps) segments, due to demand for the FEB-2028 (-89bps) and MAR-2050 (-27bps) bonds, respectively.
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