The Nigerian naira traded flat at N362 against the American dollar in the parallel market for the 10th consecutive session.
But at the investor and exporters window (IEW), the naira strengthened by 0.02 percent to N361.18, as total turnover in the IEW closed higher by 50.14 percent Wednesday to $252.44 million, traded within the N359-N362$ band.
At Wednesday’s NTB auction, N5.40 billion, N20.00 billion, and N14.62 billion of the 91-day, 182-day, and 364-day bills were allotted.
The bills were 1.58x oversubscribed, with yields closing lower across the 91-day (10.00%; previously 10.20%) and 182-day (10.30%; previously 10.50%) bills. Yield on the 364-day bill closed at 11.50% once again.
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Meanwhile at the money market, the overnight lending rate rose 350 bps to 14.25 percent, in the absence of any significant inflows as OMO bills worth N377.62 billion are scheduled to mature into the financial system on Thursday.
At the fixed income market, proceedings in the NTB market were mixed, albeit with a bearish bias, as average yield increased by 3 bps to 12.68 percent.
The short (+13 bps) and mid (+2 bps) ends of the curve recorded yield expansions, while yield contracted at the long (-10 bps) segment.
Notable bills include the 15DTM (+99 bps), 99DTM (+42 bps), and 267DTM (-50 bps) respectively.
Sentiments were also mixed in the bond market, as average yield rose marginally (+1 bp) to 13.45%. Yield expanded at the long (+4 bps) end, on the back of a selloff of the MAR-2037 (+18 bps) bond, while yield at the short and mid segments were flat.
Frontpage September 4, 2018