In the secondary market, the average yield on Nigerian Treasury bills increased significantly due to strong selloffs in government borrowing instruments.
Selloffs could persist as wealth, fund managers weighed the impacts of inflation and higher interest rates on naira assets to redesign their portfolio strategy, a pension manager chief said in a chat with MarketForces Africa.
As investors in the fixed income offload more Treasury bill instruments across the tenors; the average yield inched higher by 707 basis points to 14.4%.
In the money market, system illiquidity eased on Friday as banks received FX backlog from the central bank, saturating the liquidity level in the financial system.
Then, key money market rates slumped as liquidity improved. Data from FMDQ showed that the open repo rate and the overnight lending rate, declined by 3.91% each to settle at 16.17% and 16.69%, respectively.
In the secondary market for FGN Bonds, trading on Friday exhibited bearish results. The average yield increased by 20 basis points to reach 15.61%.
Cowry Asset said in its update that this increase was primarily driven by a yield expansion of 459bps observed in the MAR-24 FGN paper.
In Nigeria’s sovereign Eurobonds market, there was a positive level of activity. Buy sentiment was evident across the short, mid, and long ends of the yield curve, leading to a decline in the average yield by 12 bps to 11.01% on Friday.
