December 3, 2024/Coronation Merchant Bank
Summary
- As of Friday last week, market liquidity closed negative at N237.03bn. Call, overnight, and repo rates closed within a range of 7.7% – 29.9%
- In the secondary market the average Treasury-bill yield increased by 113bps to close at 25.16% pa.
- The average yield for OMO bills increased by 4bps to 27.19% pa.
- In the FGN bond market, yields increased by 6bps across the curve to 19.46% pa. At the short end of the curve, the average yield rose by 3bps to 20.32%. At the mid-point of the curve the average yield rose by 15bps to 19.70%. However, at the long end of the curve the average yield remained steady at 17.68%.
- Meanwhile, sentiment in the Eurobond secondary market was bullish, with the average yield declining by 4bps to 9.66% from 9.70% the previous week.
- Yesterday, the DMO returned to the Eurobond market after a two-year break, successfully raising US$700m from the 6.5-year Eurobond and US$1.5bn from the 10-year issuance. The bonds were issued at a coupon of 9.625% and 10.375%, respectively. Market comment was that these yields were a little more – possibly as much as 0.25% pa – generous than earlier expected.
For the full Coronation fixed income and exchange rate (CFEX) update, please click here
