February 16, 2022 FX, Money Market, Fixed Income Summary Report

The naira depreciated in all exchange markets as it traded at NGN416.12/USD, NGN417.68/USD, and NGN574/USD in the I & E window, CBN interbank market, and parallel market, respectively.

There wasn't a lot of demand for money in the money market, so the overnight lending rate fell much further by 64bps to close at 1.28%, down from its previous session figure of 1.9%.

All other economic parameters, such as the MPR/Lending Rate, the external reserve, and the inflation rate stayed unchanged at 11.50%, 39.80 billion USD, 15.60% respectively.

The average yield of the Nigerian Treasury Bill (NTB) secondary market stayed unchanged at 4.1%.

However, the average yield declined by 15bps to close at 5.3% as against its previous session figure of 5.5% in the OMO segment.

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

Finally, in the secondary market for treasury bonds, there was a bit of buying pressure as this forced the average yield to fall by 2bps and close at 11.38%.

Across the curve, the average yield expanded at the short end, while investors’ demand increased at the Mid-end following investors demand for the JUL 23, 2030 (-4bps), JUL 18, 2034 (-16bps) and MAR 27,2035 (-9bps) bonds. At the Long-end it stayed flat.