February 9, 2022 FX, money market, fixed income summary report

The Naira gained 0.16% at the I & E window to trade at NGN416.00/USD, compared to NGN416.67/USD the previous day, while it lost 0.05% in the CBN interbank market to trade at NGN417.25/USD, compared to NGN417.05/USD the previous day.

However, the parallel market still stayed the same at NGN570/USD.

In the money market, the overnight lending rate contracted by 242bps to close at 2.8%, down from its previous session figure of 5.3%, following the absence of any significant funding pressure on the system.

All other economic parameters, such as the MPR/Lending Rate, the external reserve, and the inflation rate, stayed at 11.50%, USD39.98 billion, and 15.63%, respectively.

The average yield of the Nigerian Treasury Bill (NTB) secondary market tilted slightly to the bullish end as it stayed at 4.3%.

However, the average yield expanded by 16bps to close at 5.6% in the OMO segment.

Across the benchmark curve, the average yield continued to decline at the short end of the spectrum following traders’ demand for the 50DTM bill; but stayed flat at the mid and long segments.

However, at the NTB auction, the CBN offered for sale NGN98.01 billion for sale with a total subscription of NGN446.31 billion.

Accordingly, the CBN allotted NGN1.91 billion for the 91-day bill, NGN1.82 billion for the 182-day bill, and NGN211.23 billion for the 364-day bills at the following stop rates: 2.48%, 3.30%, and 5.20%.

Finally, in the secondary market for treasury bonds, the average yield stayed quiet at 11.54%. Across the curve, the average yield lengthens at the short end, following investors’ demand for the JAN-2026 bond, but declines at the long end, following investors’ demand for the MAR-2036 bond.