September 14, 2021/Coronation Research
Summary
- Opening market liquidity was reported at NGN68.1bn on Friday (10 Sep ‘21). Overnight and repo rates closed within a range of 14.5-16.0%. The secondary market for NTBs was largely bearish due to the increased supply of NTBs and OMO bills from the auctions in the past weeks. As a result, the average NTB yield rose by 30bps w/w to close at 4.9%, the average yield for OMO bills also rose by 17bps w/w to close at 6.2%. The secondary market for FGN bonds was also bearish in response to the increase in rates at the primary market auction. As a result, the average yield increased by 5bps to close at 11.1%. At the Eurobond market, the average yield of the sovereigns under our coverage also increased by 7bps to 5.8% w/w.
- Last week, the CBN offered NGN138.2bn and allotted NGN209.5bn worth of NTBs to market participants as it maintained the stop rates across two of the three tenors (91-day: 2.5%, 182-day: 3.5%, and 364-day: 7.2% previously 6.8%).
For the full Coronation fixed income and exchange rate (CFEX) update, please click here
