Local Investors Appetite For Bonds Bearishly Weigh Yields Down.

Date:

The FGN bond market opened on a bullish note as market activities remained focused on the mid and longest-dated bond papers especially on the 2049s and 2050s maturities. These papers continue to garner market interest following the non-inclusion of the 2026s and 2050s papers in the October bond auction circular.

Bid/offer opened the day at 7.10/6.90 for the 49s and 50s maturities sliding down by an average of 17bps to close at 6.87%/6.83% although, by mid-day, we saw more offers largely spurred by actions from profit-takers causing yields to steady around the 6.83% levels on the offer.

Thank you for reading this post, don't forget to subscribe!

We also saw few interests in the 2035s and 2045s papers which was offered at 5.30% and 6.10% respectively, although very few transactions printed as most of the bids stood around 25bps apart from the offers making it difficult to deal.

Tomorrow, we expect to see more actions from profit-takers which will likely cause rates to increase slightly especially at the belly and tail of the curve.

Benchmark FGN Bonds

Local Appetite For Bonds Continues To Weight Yields Down.

Treasury Bills

The OMO bills space opened and traded on a very quiet note as the market opened strictly one way (All bids and no offers). A few of the offers seen were on the 12th Oct maturity which traded around 1% level while some January papers were offered at 0.35%.

Read Also:  FCMB Reassures Its Involvement In Growth of Businesses In Nigeria

At the NTB space, we saw few poor offers for NTB September bills at around 0.70% although no transaction was consummated at these levels.

We expect the bills to remain very quiet with few trading actions given that the market is under-supplied.

Money Markets

The interbank system liquidity improved by c.64.85% to open the week at c.N771.83Bn following inflows from bond coupon payment and FAC by the apex bank. Consequently, dropping OBB and OVN rates to 1.00% and 1.88% levels respectively

Interbank rates are expected to coast around these levels tomorrow as there are no funding needs required by banks to drive rates upward.

FX Market

Local Appetite For Bonds Continues To Weight Yields Down.

At the Interbank, most of the rates remained unchanged except at the IEFX window which saw an improved volume of c. $120m although still largely under-supplied compared to market demand with its rates depreciating slightly by c.17k.

Eurobonds

The NIGERIA Sovereigns resumed its bullish run in today’s trading session, as demand improved across the sovereign curve, especially on mid-tenured papers, caused mostly by short-covering by market dealers. By and large, Yields compressed by an average of c.14bps across the sovereign curve.

The NIGERIA Corporates opened the week on a rather drab session as the market remained lowly supplied on most of the tracked papers.

Naija247news
Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

Share post:

Subscribe

Popular

More like this
Related

Nigeria’s Access Holding eyes $1.5 bln share or bond sale

ABUJA, March 28 - Nigeria's Access Holding Plc (ACCESSCORP.LG),...

“AfDB Invests $75 Million in Indorama for Fertilizer Expansion”

The African Development Bank has inked a $75 million...

“Zack Orji survived two brain surgeries” – Emeka Rollas gives update

March 28, 2024. Azonuchechi Chukwu. The national president of the Actors...

Sokoto kidnap victim who spent 96 days in bandits’ captivity dies after regaining freedom

March 28, 2024. Azonuchechi Chukwu. A kidnap victim, Salisu Iliyasu Takakume,...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading