The exchange rates of the Nigerian naira to the American dollar closed flat Thursday at N366 in the parallel market, while it weakened by 0.06 percent to N361.65 in the I&E FX window.
Total turnover in the IEW was lower by 56.6 percent at $108.27 billion, traded within the N359-N363/$ band. The apex bank injected $210 million into the FX market, on Wednesday allocating $100 million to the wholesale window, and $55 million apiece to the SMEs and invisibles segments.
At the fixed income and money market, the overnight lending rate eased 1,000 bps to 8.42 percent, following inflows from matured OMO bills worth N266.95 billion. The CBN mopped up N113.43 billion via OMO auction, selling N124.50 million of the 112DTM and NGN113.31 billion of the 231DTM, at respective stop rates of 11.05 percent and 12.15 percent.
Sentiments were mixed in the NTB secondary market, albeit with a bullish bias, as average yield fell by 3 bps to 12.95 percent. Demand for the 315DTM (-56 bps) bill led to yield contraction at the long (-7 bps) end of the curve, while a selloff of the 49DTM (+25 bps) bill caused yield expansion at the short (+2 bps) segment. Yield at the mid-end was flat.
However, bullish sentiments persisted in the bond market, as yield rose by 9 bps on average, to 13.43 percent. There was sell pressure at the short (+18 bps) and long (+7 bps) ends of the curve, with the JUN-2019 (+72 bps) and MAR-2036 (+15 bps) bonds recording expansions. Yield at the mid segment was flat.