The naira lost 0.25% of its’ exchange value in the I & E market when it closed at NGN415.05/USD as against its previous day position of NGN414.25/USD.
It however remained unchanged at NGN411.76/USD and NGN572.00 in the interbank market and parallel market respectively.
For the benefit of our non-financial literate readers, the overnight lending rate provides an efficient method for banks to access short-term financing from central bank depositories.
This rate is influenced by The Central Bank of Nigeria and can be used as a good predictor for the movement of short-term interest rates for consumers in the broader economy. (Investopedia)
Accordingly, the overnight lending rate contracted by 300bps from its previous day 13.5% to close at 10.5% due to the absence of any significant funding pressures on the system.
Due to a lack of significant activity, the average yield of the NTB secondary market stayed at 4.5%.
Similarly, the average yield stayed at 5.5% in the OMO segment.
Trading in the treasury bond secondary market ended slightly bearish as the average yield still maintained its previous day's position of 11.4%.
Across the benchmark curve, the average yield remained flat in the short and long segments but contracted slightly at the mid (+5bps) ends as market participants sold off demand for the MAR-2036 bonds.
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