February 10, 2022 FX, Money Market, Fixed Income Summary Report

The naira lost 0.16% at the I & E window to trade at NGN416.67/USD, compared to NGN416.00/USD the previous day, while it lost 0.03% in the CBN interbank market to trade at NGN417.37/USD, compared to NGN417.25/USD the previous day.

However, the parallel market still stayed flat at NGN570/USD.

In the money market, the overnight lending rate contracted by 133bps to close at 1.50%, down from its previous session figure of 2.8%, following the absence of any significant funding pressure on the system.

All other economic parameters, such as the MPR/Lending Rate, the external reserve, and the inflation rate, stayed at 11.50%, 39.98 billion USD, and 15.63%, respectively.

The average yield of the Nigerian Treasury Bill (NTB) secondary market tilted slightly to the bullish end as it stayed at 4.3%.

However, the average yield expanded by 13bps to close at 5.6% in the OMO segment.

Unfortunately, trading activity in the treasury bill secondary market stayed flat.

Finally, in the secondary market for treasury bonds, the average yield stayed quiet at 11.54%. Across the curve, the average yield shortens at the short end, following investors’ demand for the APR-27, 2023 (-1bp), MAR-14, 2024 (-7bps), MAR-23, 2025 (-14bp) and JAN-22, 2026 (-9bps) bonds, but increases at the mid-end at +03bps and +13bps for the JUL-23, 2030, and JUL-18, 2034, respectively.