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Money and Fixed Income

Mixed sentiments at the FX, fixed income market

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Expect sustained double-digit rate this week as CBN set for CRR debits – Experts

The Nigeria’s fixed income market closed amidst mixed sentiments on Wednesday as performances vary from the forex to the treasury bills and the bond markets.

Foreign Exchange market

The CBN official exchange rate closed at N379 to a dollar, while the street market rate closed at N476 to the dollar and at the Importers’ & Exporters’ (I&E) forex market, the naira weakened by 0.17 per cent as the dollar was quoted at N394.67 as against the last close of N394.

However, most participants maintained bids of between N385 and N408.84 per dollar.

Treasury Bills

On Wednesday, the NT-Bills secondary market closed on a positive note, with average yield across the curve declining by 3 basis points to close at 0.53 per cent from 0.56 per cent on the previous day.

The average yield across short-term, medium-term, and long-term maturities compressed by 1 basis, 3 basis points, and 5 basis points, respectively.

Meanwhile, in the OMO bills market, the average yield across the curve declined by one basis point to close at 0.39 per cent as against the last close of 0.40 per cent.

Buying interest was seen across short-term and long-term maturities with average yields falling by 3 basis points and one basis point, respectively. However, the average yields on medium-term maturities increased by 3 basis points.

Bonds Market

FGN bonds secondary market closed on a negative note Wednesday, as the average bond yield across the curve cleared higher by 6 basis points to close at 2.57 per cent, compared to 2.51 per cent on the previous day.

Average yields across medium tenor and long tenor of the curve widened by 32 basis points and 11 basis points, respectively, while the average yield across short tenor of the curve remained unchanged.

The FGNSB 11-DEC-2021 bond was the best performer with a decline in yield of 6 basis points, while the 26-APR-2029 maturity bond was the worst performer with an increase in yield of 75 basis points.

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