December 7, 2021 FX, Money Market, Fixed Income Summary Report

All major economic indicators stayed the same despite pressure of the UK, and Canada's ban on Nigeria and other African countries.

The naira which depreciated by 0.01% the previous day to close at NGN415.07/USD stayed the same at the I & E window. The exchange rate also stayed the same at the parallel market (NGN560.05/USD) and interbank market (NGN411.12/USD).

Following inflows from matured Open Market Operation bills worth NGN50 billion, the overnight lending rate contracted by 50bps to close at 16.3%.

However, the Nigerian Treasury Bill secondary market was quiet, with the average yield expanding slightly by 1 basis point to close at 4.5%, as investors position for today’s NTB Primary Market Auction.

Across the benchmark curve, the average yield expanded at the long (+32bps) end as investors sold off the 324DTM bill as yield rate close at 5.55%, but flat at the short and mid segments.

Trading in the treasury bond secondary market stayed mixed, with a slightly bullish bias, as the average yield drove upwards by 1bp to close at 11.4%.

Across the benchmark curve, the average yield contracted at the short end by -8bps due to demand for the JAN-2026 bond but expanded at the mid and long segments following sell-offs of the JUL-2030 and JUL-2034 bonds, respectively.