Stories by Kayode Tokede
The Central Bank of Nigeria (CBN) interbank foreign exchange market traded flat at N306.05 on Tuesday to underlined caution trading across markets.
At the black market, naira also trade flat against the dollar, at NN360, while In the Investors & Exporters Foreign Exchange Window, the Naira against the Dollar weakened by 0.03per cent to N362.30.
Total turnover in the window surged 92.86per cent to $498.13 million, traded within the N359-N363.50/Dollar band.
The overnight lending rate shed 125 basis points, to close at 11.17per cent, amidst absence of any significant outflows.
Proceedings in the treasury bills market were mixed, as average yield was flat, closing at 12.12per cent.
Yields expanded at the short (+one basis points) and long (+three basis points) ends of the curve, owing to selloffs of the 79DTM (+52 bps) and 219DTM (+31 bps) bills.
Conversely, demand for the 114DTM (-25 bps) bill led to yield contraction at the mid (-2 bps) segment. At the NTB auction scheduled for tomorrow, the CBN will offer N33.38 billion – N3.38 billion of the 91-day, N10.00 billion of the 182-day, and NGN20.00 billion of the 364-day – worth of bills to the market.
Sentiments were bearish in the bond market, as average yield rose 5 bps to 14.30%. There was sell pressure at the mid (+11 bps) and long (+10 bps) ends of the curve, with the FEB-2028 (+20 bps) and JUL-2034 (+26 bps) bonds recording significant yield expansions. Conversely, yield at the short (-7 bps) segment contracted, owing to demand for the JUL-2034 (-14 bps) bond.
At tomorrow’s primary auction, the Debt Management Office (DMO) plans to offer N90 billion – N25 billion of the APR-2023 (re-opening), N25 billion of the MAR-2025 (re-opening), and N40 billion of the FEB 2028 (re-opening) – in bonds to investors.