Jan 13 (Lagos) - Despite the robust system liquidity, inter-bank Call rate inched higher by 54bps to 1.54%. At the FX inter-bank market, Naira appreciated 55 kobo to NGN198.50/USD, after recording an intra-day low of NGN199.50/USD.
Amidst a relatively tepid trading session in the T-bills market, yield directions varied across maturities. Notably, yields on the 86DTM and 324DTM bills rose 69bps and 128bps to 5.73% and 9.46% respectively, whilst yields on the 72DTM and 114DTM bills declined 90bps and 113bps to 2.23% and 5.60% respectively.
As expected, bearish sentiment remained dominant in the bond market as market participants continue to react to the rise in monthly bond supply. Consequently, yields advanced 40bps on average across all maturities.
Particularly, yields on the 15.10% FGN APR 2017 and 12.14% FGN JUN 2034 bonds rose 60bps and 47bps to 11.83% and 12.55% respectively.
Barring any OMO auction, we foresee another mixed trading pattern in tomorrow’s session as investors cherry-pick across the T-bills space. However, analysts at Vetiva Capital Management in Victoria Island anticipate further yield uptick in the bond market tomorrow (albeit at a weaker pace).
reporting for easykobo.com on Wednesday, Jan 13 2016 from Lagos, Nigeria
Source - Vetiva Capital Management Ltd
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