System Liquidity opened with a balance of ca ₦824.13 billion today, higher than previous day’s opening of ca ₦207.27 billion, as inflows from bond maturities, coupon payments, NTB, and OMO maturities hit the system. As a result, Open Buy Back (OBB) and Overnight (ON) rates trended significantly lower to close at 7.00% and 7.25% from 14.00% and 14.50% respectively, the previous day.
FIXED INCOME MARKET
The NTB secondary market sustained a bullish theme, with most of the activity skewed to the newly issued 1-year NTB paper at c. 8.05% levels as market players sought to fill lost bids following the decline in stop rates at yesterday’s auction. Consequently, the average yield declined by 15bps across the NTB curve.
Trading in the FGN bonds market was mixed to slightly bearish today, with improved offers seen on the bond curve irrespective of the maturities that hit the market. Notable interest was seen predominantly on long-dated maturities, particularly on the 2035s and 2050s at c. 13.10% and 13.20%. Consequently, average yields gained ca 7bps, day-on-day.
Bullish trading sentiments were witnessed in the Eurobonds space today, with demand seen across the yield curve. Consequently, the average yield fell by ca 3bps, day-on-day.
The domestic bourse reversed yesterday’s bullish stance, as the Nigerian Stock Exchange All Share Index (NSE ASI) recorded a marginal loss of 1bp day-on-day to close at 37,866.90pts, with market year-to-date loss at – 5.97%.
In the parallel market, the Naira remained stable against the U.S Dollar, Pound Sterling, and Euro at ₦505.00/$1.00, ₦708.00/₤1.00 and ₦596.00/€1.00. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦411.20/$1.00 from ₦411.22/$1.00.
Global crude oil price extended its losses today, amid rising concerns of an anticipated supply increase after a compromise pact between leading OPEC producers and a poor weekly reading on U.S. fuel demand. Thus, Brent Crude oil price fell ca 0.78% day-on-day to $74.18pb, while WTI dropped ca 0.86% to $72.51pb, as at report time.