ON Tuesday, the average yield on the Federal Government of Nigeria (FGN) bond fell after a cautious trading session in the fixed income market. Because of the mild market, the Treasury bills segment saw a light trading session, similar to the open market operations market.
After falling to N419 on Monday, the Naira appreciates in the foreign exchange (FX) window for investors and exporters. The foreign exchange rate rose 0.2 percent to N418.25 per US dollar on Tuesday, amidst uncertainty surrounding the CBN g7overnor’s presidential ambitions.
Improved liquidity in the banking sector lowered short-term rates in the money market. Both open buy-back and overnight lending rates fell, lowering the average interbank rate.
Traders reference data from FMDQ Exchange that shows the overnight lending rate fell 133 basis points to 5.0 percent today. A N38.08 billion inflow from OMO maturities that struck the financial system was blamed for the drop.
According to a market note from Cordros Capital, trading activity in the Treasury bills secondary market was mixed, with a bullish bias. The average yield fell a basis point to 3.7 percent, according to traders. The average yield was flat across the curve in the short and mid segments, but contracted (-2bps) at the long end.
This was owing to strong demand for the 261-day (-11bps) bill. According to Cordros Capital analysts, the average yield in the open market operations (OMO bills) segment was steady at 4.1 percent.
Trading activity on FGN products was mixed in the bond market, but with a bullish bias, as the average yield fell 2 basis points to 11.1 percent.
According to traders, the average yield fell at the short (-2bps) and long (-4bps) ends of the benchmark curve as investors sought the JAN-2026 (-11bps) and MAR-2050 (-10bps) bonds, respectively; the average yield remained steady in the mid-segment.
