Tuesday , February 28 2017
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Naira Gains, Trades 490 at Parallel Market

  • At the time of writing, the naira — in the interbank market — had appreciated against two of the three currencies we currently track. The NGN/GBP (+1.24%) and NGN/EUR (+0.01%) appreciated to N384.82 and N332.30 respectively. The naira was flat against the greenback as the NGN/USD at N305.00. The Central Bank maintained its daily intervention, selling USD1.5 million dollars to the interbank market. In the parallel market space, the naira appreciated against the dollar by 0.61% to N490.00, whilst it depreciated by 0.84% against the pound to N600.00. The NGN/EUR traded flat at N506.00.

FIXED INCOME AND INTERBANK

  • The money market overnight rate contracted by 25bps to 8.58%, despite today’s OMO auction wherein the apex bank sold N223.41 billion (N22.46 billion and N200.96 billion of the 150-day and 318-day bills respectively) worth of bills.
  • The treasury bills market closed on a bearish note, as average yield expanded by 4bps to close at 17.92% — amid stop rates of 18.00% and 18.60% in today’s OMO auction. Yields at the short (+30bps) and mid (+10bps) ends of the curve came under pressure, following selloffs of the 9-MAR-17 (+66bps) and 4-MAY-17 (+81bps) bills respectively. On the other hand, the long (-9bps) end contracted, following demand for the 31-AUG-17 (-142bps) maturity.
  • Similarly, bearish sentiments dominated the bonds market, average yield expanded by 6bps to 16.80%. Investors were particularly downbeat across the mid (+11bps) and long (+13bps) ends of the curve – wherein yields expanded on average – as the NOV-2028 (+13bps) and JUL-2034 (+16bps) bills, respectively, came under pressure. At the short end, demand for the JUL-2017 (-44bps) caused yield to contract by 11bps.
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