September 7, 2021/Coronation Research
Summary
- Opening market liquidity was reported at NGN445.4bn on Friday (03 Sep ‘21). Overnight and repo rates closed within a range of 10.0-13.5%. The secondary market for NTBs was relatively active. As a result, the average NTB yield declined by 34bps over the week to close at 4.6%, while the average yield for OMO bills was up by 1bps w/w to close at 6.1%. The secondary market for FGN bonds was active on the back of improved system liquidity as average yield declined by 11bps to close at 11.0%. At the Eurobond market, average yield of the sovereigns under our coverage declined by 19bps to 5.7%.
- On Thursday last week, the CBN sold NGN50.0bn worth of OMO bills to market participants and maintained the stop rates across the three tenors, unchanged from prior auctions (82-day: 7.0%, 152-day: 8.5%, and 327-day: 10.1%).
For the full coronation fixed income and exchange rate (CFEX) update, please click here
