Bond yields inch higher, NIBOR falls

Investors were downbeat in the bond market Wednesday, with average yield inching higher by 2 bps to 13.78 percent. Yields closed higher at the short (+8 bps), mid (+2 bps), and long (+1 bp) ends of the curve, owing to selloffs of the JUN-2019 (+8 bps), JUL-2021 (+4 bps), and MAR-2024 (+12 bps) bonds respectively.

In the same vein, NIBOR fell for all tenor baskets amid ease in financial system liquidity while NITYY moved in mixed directions across maturities at the long dated fixed income market.

The prices of tracked OTC FGN bonds and London traded FGN Eurobonds fell for most maturities amid renewed sell pressure.
The overnight lending rate dropped by 633 bps to 9.00 percent, following anticipation of Thursday’s inflow via maturing OMO bills worth N89.08 billion.

Accordingly, activities turned bullish in the NTB market, as average yield declined by 3 bps to 14.46 percent. Yields contracted across all ends of the curve – short (-4 bps), mid (-1 bp), and long (-5 bps) – driven by interests in the 92DTM (-58 bps), 183DTM (-11 bps), and 235DTM (-35bps) bills respectively. At the time of writing, the result of today’s auction was unavailable.