Wednesday FX, Money Market, Fixed Income Summary Report

As the country continues to grapple with information concerning the new variant of the coronavirus called Omicron, the market is still waiting for more official statements about how to deal with this virus.

There were slight changes in the FX, money market, and fixed income markets as investors and traders tried to adjust to global changes in trade and investment because of this new variant of the coronavirus.

That notwithstanding, as the Christmas holiday season approaches and is attached to the release of financial reports from blue-chip companies, pressures will be mounted on several money and capital market bills.

Domestic currencies, particularly the naira, will face demand pressures in the parallel market, the I & E window, the interbank market, or all of them at the same time.

As of the time of compiling this report, the naira remains unchanged at N415.07/USD and NGN411.64/USD in the interbank and parallel markets, while it depreciated between NGN557.05/USD and NGN560.00 in the black market.

However, the overnight lending rate contracted to 15.82% by 200 basis points, from its growth figure of 17.8% on Tuesday. This was caused by an absence of funding pressures on the system from any matured securities.

Consequently, the NTB secondary market traded quietly as the average yield stayed flat at 4.8%.

The average yield on bonds in the secondary market remained flat, with the exception of the January-2022 bond, whose yield increased by 1 basis point to 3.43%.

In conclusion, the average yield in the OMO segment remained unchanged at 5.5%.