Naira trades flat at N502 against dollar on Nigerian streets

Naira trades flat at N502 against dollar on Nigerian streets

Naira trades flat at N502 against dollar on Nigerian streets


 

 

Nigerian local currency, naira traded flat in the currency market at N502 against dollar on Tuesday in the parallel market amidst bid range between N400 and N420.86 to the dollar.

However, the naira depreciated by 0.08 per cent as the dollar was quoted at N411.45 to the dollar as against the last close of N411.13 at the I&E FX market.

Official data obtained by Business Metrics from FMDQ OTC Exchange showed that at the end of the trading session, investors traded $110.67 million.

Treasury Bills Market

The Nigerian T-Bills secondary market closed on a mildly positive note with average yield across the curve decreasing by 3  basis points to close at 6.74 per cent from 6.77 per cent recorded the previous day.

Average yield across the long-term maturities compressed by 5 basis points. However, the average yields across short-term and medium-term maturities closed flat at 4.34 per cent and 5.46 percent, respectively.

Buying interest was witnessed in the NTB 30-Jun-22 maturity bill with a yield decrease of 60 basis points, while yields on 21 bills remained unchanged.

OMO Market

In the OMO bills market, the average yield across the curve decreased by 2 basis points to close at 9.91 per cent as against the last close of 9.93 per cent. Mild buying interest was seen across short-term and long-term maturities with the average yields falling by 2 basis points and 3 basis points, respectively.

However, the average yield across the medium-term maturities closed flat at 9.92 per cent. Yields on 8 bills compressed with the 22-Feb-22 maturity bill recording the highest yield decrease of 12 basis points, while yields on 16 bills remained unchanged.

Bonds Market

The FGN bonds secondary market closed on a mildly positive note Tuesday as the average bond yield across the curve cleared lower by 8 basis points to close at 9.53 percent from 9.61 percent on the previous day.

Average yield across the short tenor of the curve declined by 12 basis points, while the average yield across the medium tenor of the curve expanded by 7  basis points. However, the average yield across the long tenor of the curve remained unchanged.

The FGNSB 10-JUL-2022 Sukuk bond was the best performer with a decline in yield of 45  basis points, while the 17-MAR-2027 maturity bond was the worst performer with an increase in yield of 11  basis points. The secondary bond market is likely to remain subdued as investors await guidance for bond supply from the DMO’s quarterly bond auction calendar.