January 22, 2025/Coronation Research

Summary

• Last week, system liquidity was under pressure as liquidity closed negative at N397.79bn (17 Jan ’25). Call, overnight and repo rates closed within a range of 7.70- 32.75% as rates in the money market tightened. This week, we expect interbank rates to remain elevated.
• In the secondary market for T-bills, the average yield declined slightly by 1bps across the yield curve to close at 25.21%.
• Meanwhile, the market for OMO bills was bearish, the average yield for OMO bills increased by 51bps to 28.34% pa.
• In the secondary market for FGN Bonds, the average yield increased by 21bps across the benchmark curve, to settle at 20.07% pa. We observed selloffs across the yield curve. Average yields at the short and medium end of the curve rose by 23bps and 33bps to close at 21.20% and 20.29% respectively, while the long end of the curve added 5bps closing at 17.86%.
• Sentiment in the Eurobond market was bullish, as average yield declined by 9ps to 9.44% from 9.52%.

For the full Coronation fixed income and exchange rate (CFEX) update, please click here