The Nigerian naira depreciated on Wednesday against the dollar by 0.12 percent to N362.02 in the investors and exporters (IEW)– highest since August 2017— while it strengthened by 0.82 percent to N363 in the parallel market.
Total turnover in the IEW fell by 45.11 percent to $176.98 million, consummated within the N359-N363/$ range as against NN347.50-N363 recorded previously.
The overnight lending rate shed 192 bps to 2.50 percent, amidst still buoyant liquidity. Meanwhile, OMO and treasury bills worth N206.37 billion and N99.21 billion will mature into the system tomorrow.
Proceedings in the NTB market were mixed, albeit with a bearish bias, as average yield recorded a marginal increase (+ 1 bp) to 12.62 percent.
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The short (+5 bps) and long (+4 bps) ends of the curve recorded yield expansions, while yield contracted at the mid (-10 bps) segment. Notable bills include the 22DTM (+85 bps), 288DTM (+47 bps), and 169DTM (-46 bps) respectively.
At Wednesday’s NTB auction, N4.96 billion, N24.80 billion, and N19.84 billion of the 91-day, 182-day, and 364-day bills were allotted.
The auction was 2.08x oversubscribed, with yield remaining unchanged on the 91-day (10.00%), closing lower on the 182-day (10.30%; previously 10.50%), and higher on the 364-day (11.00%; previously 10.70%) bills.
Bullish sentiments persisted in the bond market, as average yield moderated by 8 bps to 13.19%.
Yield contracted at the short (-13 bps) and mid (-14 bps) ends of the curve, following demand for the JUN-2019 (-84 bps) and MAR-2024 (-25 bps) bonds.
Conversely, yield at the long (+1 bp) segment expanded following a selloff of the JUL-2034 (+9 bps) bond.