The exchange rate of the Nigerian naira to the American dollar remained flat Tuesday at N362 in the parallel market, while it depreciated by 0.13 percent to N361.31 in the investors & exporters (IEW) FX window.
Trading activities on the day showed that total turnover in the IEW declined by 58.1 percent to $161.79 million, traded within the N330-N363/$ band.
At the money market, the overnight lending rate surged 2,517 bps to 38.00 percent, from 12.83 percent in the previous session, in the absence of any significant inflows to support market liquidity.
Proceedings were bearish in the NTB market, as average yield rose 13 bps to 13.00 percent. Sell pressure was spread across the short (+18 bps), mid (+8 bps), and long (+14 bps) ends of the curve, with yields on the 37DTM (+42 bps), 121DTM (+29 bps), and 191DTM (+67 bps) bills moderating significantly.
Trading in bond market was mixed, albeit with a bullish tilt, as average yield moderated by 4 bps to 13.61 percent. Yields contracted at the short (-24 bps) end of the curve, driven by demand for the JUN-2019 (-93 bps) bond. Conversely, yields expanded at the mid (+5 bps) and long (+7 bps) segment, following selloffs of the JAN-2026 (+12 bps) and MAR-2036 (+7 bps) bonds.
Meanwhile at Wednesday’s (tomorrow) primary market auction, the Debt Management Office (DMO) plans to offer N60 billion – N20 billion of the APR-2023 (re-opening), N20 billion of the MAR-2025 (re-opening), and N20 billion of the FEB 2028 (re-opening) – in bonds to investors.
Oil windfall expectations from the Middle East crisis