T-bills, bonds trade flat as official window Naira remains weaken

The mood on Wednesday in the fixed income market was generally quiet as only a few instruments traded across board.

The overnight (O/N) rate in the money market decreased by 0.05 percent to close at 13.95 percent as against the last close of 14 percent, while the Open Buy Back (OBB) rate decreased by 0.50 percent to close at 13.00 percent compared to 13.50 percent the previous day. However, system liquidity increased 140.3 percent to close at N89.66 million.

At the Investors’ & Exporters’ FX market, Naira remained weak at N415.78 against the dollar and decreased 0.22 percent from N415.85 per dollar the previous day. Most participants maintained bids at between N404 and N444 per dollar, while the CBN official window still remained unchanged at N411.43 per dollar.

Elsewhere in the fixed income market, the Nigerian T-Bills secondary market closed on a mildly positive note with average yield across the curve decreasing by one basis point to close at 5.14 percent from 5.15 percent the previous day.

The average yield across the long-term maturities declined by two basis points. However, the average yields across short-term and medium-term maturities remained unchanged at 3.70 percent and 4.62 percent, respectively. NTB 8-Sep-22 (-22 basis points) maturity bills witnessed buying interest, while yields on 19 bills remained unchanged.

In the OMO bills market, the average yield across the curve closed flat at 5.48 percent. Average yields across short-term, medium-term, and long-term maturities remained unchanged at 5.35 percent, 5.54 percent, and 6.04 percent, respectively.

The FGN bonds secondary market closed on a mildly negative note on Wednesday as the average bond yield across the curve cleared higher by one basis point to close at 8.47 percent from 8.46 percent the previous day. The average yields across the short tenor of the curve increased by two basis points. However, the average yields across the medium tenor and long tenor of the curve remained unchanged.