November 25, 2024/Coronation Research
Summary
- Market liquidity closed negative at N321.5bn on Friday (22 Nov ‘24). Call, overnight, and repo rates closed within a range of 7.1% – 32.8%.
- In the secondary market, the average Treasury bill (T-bill) yield declined by 12bps to close at 24.0% p.a. At the primary market T-bill auction last week, the CBN offered N610.8bn, but allotted N693.0bn worth of T-bills. Stop rates increased across the three tenors, 91-day: 18.0% (previously 17.0%), 182-day: 18.5% (previously 17.5%), and 364-day: 23.5% (previously 19.86%), implying a yield of 30.7% pa for the highest-yielding 1-year paper.
- The average yield for OMO bills increased by 77ps to 27.2% pa.
- In the FGN bond market, average yields decreased by 3bps to 19.4% p.a. At the short end of the curve, the average yield decreased by 16bps to 20.3%, while at the mid-point of the curve, the average yield rose by 12bps to 19.6%. At the long end of the curve, the average yield remained steady at 17.7%. The Debt Management Office held its monthly auction of FGN Bonds on 18 November. It offered N120.0bn but raised N346.7bn through re-openings of the 19.30% FGN April 2029, and the 18.50% FGN February 2031. The bids were allotted at marginal rates of 21.0% and 22.0%, respectively.
- In the Eurobond market, the average yield increased by 4bps to 9.70% from 9.64% the previous week.
For the full Coronation fixed income and exchange rate (CFEX) update, please click here
