GBOLABO AFUWAPE
The Naira appreciated at both the Interbank and Parallel FX markets by 0.02 percent and
0.28 percent respectively to close at NGN306.85/USD and NGN362.00/USD.
At the close of trades last week, the average money market rate settled at 15.75 percent, after the OBB and OVN rates declined by 4.67 percent and 6.33 percent respectively to close at
15.33 percent and 16.17 percent.
The secondary market for Treasury Bills was largely bullish. The average T-Bills yield fell
to 14.69 percent last week, from 14.98% in the previous week.
The yields on the 1M, 6M, 9M
and 12M tenors all dropped by 0.94 percent, 0.76 percent, 0.12 percent and 0.13 percent respectively.
Only the 3M tenor recorded a 0.50 percent gain in yield.
Similarly, the Treasury Bonds market was positive this week as yields across thirteen (13) instruments declined while five (5) other instruments recorded yield gains.
Hence, the average bond yield declined marginally by 0.06 percent to close at 15.23 percent.
The Federal Government conducted a Primary Market Auction on the 16th of January,
where Treasury Bills worth NGN225.25bn were issued.
The 91-day, 182-day, and 364-day instruments were oversubscribed at respective bid to cover ratios of 3.00x, 1.34x,
and 1.04x at discount rates of 11.00 percent, 13.10 percent and 15.00 percent.
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