Sep 22 (Lagos) - Amidst further improvement in system liquidity (c.N55 billion), the Inter-bank Call rate declined 700bps to 10.33%. At the FX inter-bank market, the Naira depreciated a further 25 kobo to close at N310.08.
Following the decision of the Monetary Policy Committee to hold interest rates at yesterday’s meeting, trading in the T-bills space was mixed albeit with a slightly bullish bias. Whilst the yields on the 36DTM (-127bps) and 232DTM (-133bps) bills moderated to 16.28% and 17.58% respectively, yield on the 78DTM (+180bps) bill advanced to 16.12%.
Meanwhile, the bond market extended its bullish streak as yields on the benchmark bonds declined by 17bps on average. Demand was particular strong on the 12.50% FGN JAN 2026 and 12.40% FGN MAR 2036 bonds as their yields moderated 21bps and 19bps to both close at 14.87%.
Whilst analysts at Vetiva Capital Management Ltd in Victoria Island expect improved liquidity to support bullish sentiment, they expect overall market direction to be guided by results of today’s T-bills PMA which are yet to be released.
reporting for easykobo.com on Thursday, Sep 22 2016 from Lagos, Nigeria
If you would like to post comments! Please log in.