Fixed Income Market Records Quiet, Soft Trading Session
The fixed income market traded today largely muted as investors remained cautious amidst second wave of coronavirus.
Trades in the T-bills market opened mildly bearish, aided by sell-offs on two (2) instruments along the long end of the market.
Market data showed that Treasury bills curve was unchanged at 0.38% while OMO curve remained flattish inching up 2bps to 0.55%.
Analysts said this sentiment was also sustained in the bond market as the benchmark bond yield curve remained unchanged at 5.72%.
“In the absence of FGN primary market offering this week, activity is expected to improve in the secondary market”, Chapel Hill Denham said in a note.
Meanwhile, financial system liquidity opened slightly lower than yesterday’s N334.41 billion.
This easing in funding resulted in a compression of the Open Buy Back (OBB) and Overnight (OVN) rates by 50 basis points (bps) and 112bps to 0.50% and 0.88% respectively.
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As there are no FGN primary market offerings this week, analysts said they are expecting funding pressures remain benign.
But the market expects inflows from a maturing OMO bill worth N250.51 billion to positively impact system liquidity.
In the currency market, exchange rate traded range bound in official segments.
While the official segment was unchanged at N379.00 the I&E Window depreciated by 0.17% to N394.67.
However, in the parallel market selling the local currency gained against the dollar at N476.00 (+0.21%).
Fixed Income Market Records Quiet, Soft Trading Session
