February 23, 2022 FX, Money Market, Fixed Income Summary Report

The naira remained unchanged in the I & E exchange window, the CBN window, and the parallel market, at NGN416.67/USD, NGN416.37, and NGN573, respectively.

The external reserve, MPR/Lending Rate, and inflation rate all stayed unchanged at $39.78 billion, 11.50 percent, and 15.60 percent, respectively.

In the absence of significant inflows into the system, the overnight lending rate climbed by 317 basis points to 9.5 percent from 6.3 percent previously.

The NTB secondary market saw some purchasing pressure as the average yield fell to 3.6 percent from 4.2 percent previously. Taking a closer look at the Nigerian treasury bill market, it has had a particularly bullish run due to a high amount of activity, with the average yield declining in the short, mid, and long sectors.

Similarly, the average yield in the OMO market declined by 41 basis points from 5.3 percent to 4.9 percent.

The average yield declined by 41 basis points from its previous rate of 5.3 percent. Secondary market Treasury bond trading was poor, with the average yield rising by 2 basis points to 11.0 percent.

The average yield fell across the benchmark curve, with the short and long ends contracting as market participants sought the JAN-22, 2026 (-4bps) bond, with the yield falling to 10.06 percent from 10.10 percent on the previous day, and the MAR-18, 2036 (-43bps) bond, with the yield falling to 12.25 percent from 12.68 percent on the previous day, respectively.

The average yield in the mid (+27bps) class, on the other hand, rose mainly to profit-taking on the JUL-23, 2030 (+109bps) bond, increasing to 12.25 percent from 11.16 percent on the previous day.