Friday, 10 March 2023
Money Market
Market liquidity opened the day with a credit of ₦197.26bn, a decrease from the previous day’s level as banks funded for the NTB Auction.
Nevertheless, the OPR and O/N rates remained stable to close at 10.50% and 10.81% respectively.
We expect the rates to hover around these levels opening next week.
Foreign Exchange
Closing the week, we witnessed modest supply of Dollars relative to demand. Consequently, the Naira lost 50 Kobo to the Dollar to close at $/₦461.50
The NAFEX gained marginally by 17 Kobo to fix at $/₦461.29. As expected, the CBN released the result of its biweekly retail SMIS result today.
Treasury Bills
Closing the week, the Treasury Bills market opened on a quiet note with mixed sentiment witnessed across the curve. The trend was sustained throughout the trading session with most of the activity seen on the short dated Special Bills (Spebs) and the long end of the curve. Despite this, closing rates remained unchanged from opening levels.
We expect a quiet market at the start of next week as market participants anticipate the NTB auction scheduled to hold on Wednesday.
Bond
The Bond market opened on a quiet note today. As market progressed, we observed demand on the short and long-tenured on-the-run securities. Bids for the 2028 and 2049 bonds hovered around 13.90% and 15.55% respectively. The 2028 instrument barely traded as offers were seen at 13.75% levels while trades for the 26-Yr bond were consummated around the bid rate. Activity around the med-tenured bonds were muted and as a result, average yields remained unchanged from opening levels.
We anticipate a slight increase in yields next week despite the expected coupon payment of N128bn on the NIGB 2024 and NIGB 2027 bonds.
Sources: FMDQ, Access Bank Treasury Team, CBN, Bloomberg, Nairametrics, Reuters
