As the bond market continues to gather momentum for the year with greater offerings from the federal government and few from corporates so far in the year, yields on Feb2020 and 5year benchmark has inched downwards.
Reflecting the mixed movement in bond yield last Friday, while demands increased for short term bonds, yield for medium term bonds buoyed
The downward movement in yield was more manifest on the Feb 2020 and the 5yr benchmark bond which weakened by 6bps and 4bps to 16 .74 per cent and 16 .29 per cent respectively.
However, the yield on the 7year and 10year benchmark debt instrument market though mixed during the last trading day of last week increased by 7bps and 2bps to 16 .28 per cent and 16.95 per cent respectively.
Going in the new week, analysts have predicted that market activity would continue to be influenced by liquidity level.
Meanwhile, in the money market, while the 6month Nigerian Inter Bank Order Rate (NIBOR) declined by 16bps to 22.12 per cent , this was against the 1month and 3month NIBOR rates which increased by 7bps and 8bps to 7.73 per cent and 19.11 per cent respectively .
However, the Nigerian Naira (NGN) during the week at the interbank market remained at N305 levels against the USD as CBN continued to hedge the local currency from further decline.
Irrespective of the sustained effort of supporting the Naira against the dollar, the local currency shed – 0.50 per cent to N387 against the Great Britain Pounds (GBP) and -0.13 per cent to N335 against the Euro (EUR).
At the parallel market, the NGN remained flat at N498 against the USD and N597 against the GBP while it shed -0.40 per cent to N522 against the EUR.
This week, analysts predict that the downward pressure on the local currency would remain as foreign exchange supply remains inadequate