December 31, 2024/Coronation Research

Summary

• Opening market liquidity stood at N736.36bn (27 Dec ’24). Call, overnight and repo rates closed within a range of 7.00%- 27.11%, as rates in the money market narrowed. We expect interbank rates to stay at current levels, barring any significant outflows from CRR Debits.
• In the secondary market for T-bills, the average yield eased by 21bps to 25.49% pa.
• The average yield for OMO bills moderated by 18bps to 27.11% pa.
• Meanwhile, trading activity in the FGN Bond market was bearish, as the average yield inched up by 2bps across the curve, reaching 19.75% pa, driven by sell offs at the medium end of the curve, where average yields rose to 19.85%. Meanwhile, average yields for the short and long ends of the curve were held steady at 20.85% and 20.35%, respectively.
• In the Eurobond market, average yield closed higher by 2bps to close at 9.67% from 9.64% in the previous week.

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