February 14, 2022 FX, Money Market, Fixed Income Summary Report

The naira lost 0.2% at the I & E window to trade at NGN416.67/USD, while it traded at NGN417.37/USD and NGN570/USD in the CBN interbank and parallel markets, respectively.

There wasn't a lot of demand for money in the money market, so the overnight lending rate fell by 75bps to close at 3.30%, down from its previous session figure of 4.0%.

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 stayed quiet at 4.3%.

However, the average yield expanded by 19bps to close at 5.5% in the OMO segment.

Unfortunately, trading activity in the treasury bill secondary market stayed flat as we expect the next batch of treasury bill auctions to come up two weeks from now.

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 (-4bp), JUL-23, 2030 (-3bps), JUL-18, 2034 (-10bps), MAR-17, 2035 (-12bps), and MAR-18, 2036 (-14bp) bonds, but increases at the long end with the APR-26, 2049 (+7bps) and MAR-27, 2050 (+8bps), respectively.