Oct 20 (Lagos) - Inter-bank Call rate dropped a further 409 bps to 14.83% on the back of improved liquidity. At the FX inter-bank market, the naira remained unchanged against the dollar at N 304.75 whilst the one year forward rate fell to N 348.14 (prev:N 355).
The CBN held a Primary Market Auction in yesterday’s session, selling N 21 billion, N 28 billion, and N 32 billion on the 91-day, 182-day, and 364-day bills at stop rates of 14%, 17.09%, and 18.30% respectively (effective yields: 14.51%, 18.68%, and 22.39%).
In today’s session, the T-bills market extended its bullish run as yields declined 28 bps on average. With the 182-day bill settling at a lower rate than secondary market levels, buying was weighted around the mid end of the space with yields on the 105DTM (-168bps), 203DTM (-102 bps), and 266 DTM (-226 bps) bills dropping to 17.53%, 18.08%, and 18.56% respectively.
Meanwhile, the bond market traded nearly flat as large advances on the 16.39% FGN JAN 2022 bond (up 13bps to 14.88%) offset moderations on the 14.20% FGN MAR 2024 and 12.50% FGN JAN 2026 bonds which moved 3bps and 4bps to 15.01% and 15.29% respectively.
Improved system liquidity continues to spur buying, especially on bills, and analysts at Vetiva Capital Management Ltd in Victoria Island expect this to continue, barring CBN mop up during tomorrow’s session.
reporting for easykobo.com on Thursday, Oct 20 2016 from Lagos, Nigeria
Source - analysts at Vetiva Capital Management Ltd in Victoria Island
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