Thursday, 09 March 2023
Money Market
Market liquidity opened the day with a credit of ₦303.86bn, and was exacerbated by the net NTB settlement of ₦100bn.
Nevertheless, the OPR and O/N rates remained fairly stable to close at 10.5% and 10.86%, respectively. We expect the rates to remain stable tomorrow as barring any funding activity.
Foreign Exchange
Activities at the Investors’ and exporters’ window remained skewed to the bid side, nevertheless, the Naira strengthened by 25 Kobo to close at $/₦461.00
The NAFEX, on the other hand, weakened by 17 Kobo to close the day at $/₦461.46.
The CBN is expected to release the results of last week’s Retail SMIS auction tomorrow. Rates should close the week at similar levels.
Treasury Bills
The Treasury Bill secondary market traded on a quiet note with a bullish undertone as market players sought to fill the unmet demand from the auction yesterday.
Pockets of demand were observed on the long end of the curve, with interest largely skewed towards the newly issued 7-Mar-2024 1-year bill. Despite a fairly active market, average rates remained unchanged from opening levels.
Closing the week, we expect the market to trade on a similar note as market players continue to adopt a cautious trading approach.
Bond
The FGN Bond market opened on a quiet note as local players funded for their NTB winnings. We however noted pockets of demand on select short-tenured papers (2025 and 2026 bonds) as well as the 2049s at 15.45% just before midday. The trading session continued a calm note, with minimal activity across the benchmark bonds. This trend was sustained till the end of the trading session and as such yields across board remained unchanged from opening levels.
We expect minimal activity tomorrow, as the liquidity in the money market would have dried up owing to the NTB auction debit.
Sources: FMDQ, Access Bank Treasury Team, CBN, Bloomberg, Nairametrics, Reuters
