(Greenwich Merchant Bank): The NT-bills market opened the week with selloffs seen across the tickers, as yields rose 56bps to average 2.1%. The bearish tone of trade was despite a handful of buying interest at the short end of the market. Also, system liquidity fell by 85.5% to open at NGN78.1bn. However, funding rates eased with the Open Buy Back and Over Night rate decreasing by 3.8%pts and 4.6%pts apiece to 11.5% and 11.6% respectively. We anticipate the maturity of NT-bills worth NGN88.9bn later this week.
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In the OMO market, yields expanded by 21bps to log at an average of 6.2%. There were noticeable pockets of demand across the short and long ends of the market, although, trade closed on a bearish note.
The Bond market traded bearish, resulting in the average bond yield increasing by 6bps to 9.4%. Notably, the belly and tail end of the curve traded flat while yields at the short end rose 21bps due to heavy selloffs on the 27-JAN-2022 instrument (+137bps). Across the markets this week, we expect investors to continue to trade cautiously with mixed sentiment across the curve while seeking opportunities to cherry-pick higher-yielding papers across the curve.
In the Parallel FX market, the Naira weakened by NGN2.00/USD to trade at NGN482.00/USD from its previous close of NGN480.00/USD. At the I&EW, the naira fell by NGN0.21/USD to close at NGN411.88/USD.