Naira weakens by 0.4%

Naira weakens by 0.4%

Naira weakens by 0.4%


 

Nigerian currency, naira weakened by 0.2 per cent to N411.88/$1 at the I&E window and by 0.4 per cent to 482.00/$1 in the parallel market.

In the money and fixed income space, the overnight lending rate fell by 458bps to 11.8 per cent, in the absence of any significant funding pressure on the system.

The NTB secondary market was bearish, as the average yield expanded by 31bps to 2.1 per cent. Across the curve, average yield declined at the short (-8bps) and mid (-1bp) segments due to demand for the 94DTM (-8bps) and 115DTM (-1bp) instruments, respectively.

Conversely, average yield expanded at the long (+66bps) end as market participants sold off the 325DTM (+173bps) instrument.

Similarly, proceedings at the Treasury bonds secondary market was bearish, as the average yield in the space expanded by 7bps to 9.3 per cent.

Across the benchmark curve, the average yield was higher at the short (+21bps) end, following profit-taking on the JAN-2022 (+137bps) bond. The average yield was flat at the mid and long segments.