February 24, 2022 FX, Money Market, Fixed Income Summary Report

The naira fell to NGN416.25 in the I & E exchange window, while it traded at NGN416.37 and NGN573 in the CBN Interbank window and parallel market, respectively.

The external reserve, the MPR/lending rate, and the inflation rate all remained unchanged at $39.78 billion, 11.50 percent, and 15.60 percent, respectively.

Following increased outflows from gross Nigerian Treasury Bill issuances, which totaled NGN142.73 billion, the overnight lending rate grew by 367 basis points to 13.2 percent, up from 9.5 percent previously.

The previous trading session's buying pressure in the NTB secondary market persisted, with the average yield rising to 3.7 percent.

The CBN offered NGN115.28 billion for sale in yesterday's NTB auction, with a total subscription of NGN602.65 billion.

Details

• The CBN authorized NGN258.01 billion to NGN5.36 billion for 91-day bills,

• 3 billion for 182-day bills

• 61 billion for 364-day bills – at stop rates of 2.24 percent (previously 2.48 percent), 3.30 percent (unchanged), and 4.35 percent (previously 5.20 percent), respectively.

Similarly, the average yield in the OMO market declined by 26 basis points, from 4.9 percent to 4.6 percent.

Secondary market Treasury bond trading remained calm, with the average yield remaining unchanged at 11.0 percent.

The average yield fell across the benchmark curve, with the short and long ends contracting as market participants sought the MAR-14, 2024 (-1bps) bond, with the yield falling to 8.21 percent from 8.22 percent the day before, and the MAR-27, 2035 (-8bps) bond, with the yield falling to 12.11 percent from 12.17 percent the day before.

The average yield in the mid (+13bps) segment expanded as profit-taking forced a sell-off of the APR-26, 2029 (+53bps) bond.