Yields Steady on Calm Trading on Fixed Income Securities
Yields on fixed income securities were steady following calm trading activities ahead of the Central Bank of Nigeria’s primary market auction today and inflation rate expectation.
While CBN is expected to auction Nigerian Treasury bills to roll over maturing instruments, the market is also expecting the National Bureau of Statistics to release the inflation figure.
Market consensus remains that the inflation rate for August will worsen from a 19.64% reading in July 2022. In Ghana, inflation has crossed 33% amidst global disruption triggered by the energy crisis and Russia-Ukraine war.
In the money market, the average interbank rate dropped by 425 percentage points to close at 7.50%, according to data from the FMDQ Exchange platform, following the inflow from OMO bill maturities worth N35.00 billion.
Market data showed that the Open Buy Back rate and the overnight lending rate declined by 450 basis points and 400 basis points to close at 11. 50% and 12.00%, respectively. READ: Treasury Bills, Bond Yields Rise, OMO Rates Steady
In the Treasury Bills secondary market, trading activities ended on a calm note as a result, the average rate settled at 7.53%. Elsewhere, the average yield contracted by 19 basis points to 10.6% in the OMO bills segment.
Also, trading activities in the FGN bond secondary market were quiet as the average yield remained flat to close at 12.96%. The FGN Eurobond space was bearish as higher than expected inflation readings sent panic amidst investors, consequently, sell-side pressure was witnessed across the sovereign curve.
In sum, the average yield was up by 13 basis points to close at 11.95% while the naira gained 11 basis points against the U.S. Dollar at the Investors and Exporters FX Window to close at N436.04, Alpha Morgan Capital said. # Yields Steady on Calm Trading on Fixed Income Securities
