The naira traded the week between 359.00 and 361.00 per dollar as daily turnover in the investor and exporter (I&E) FX window continues to grow.
Daily turnover in the I&E window yesterday was $269.48 million.
Overnight rates remained elevated in double digits throughout the week as CBN continued its mop of liquidity through OMO issuances.
Overnight rates opened at 26 percent and closed at about the same rate.
The yields on 30-60-day T-bills rose as a consequence of the tight money markets.
The 30, 90, 180 and 364-day bills opened in the secondary market at 20.52 percent, 17.18 percent, 17.46 percent, and 16.13 percent respectively, and closed at 21.30 percent, 17.15 percent, 17.15 percent, and 15.40 percent.
There will be a bond auction next week with 50 billion naira each of the 2021 and 2027 bonds on offer.
Bond yields inched down week-on-week. The 2020, 2021, 2022, 2027, 2036 and 2037 maturity bonds opened in the secondary market at 14.54 percent, 15.07 percent, 15.11 percent, 14.85 percent, 14.83 percent, and 14.71 percent respectively, and closed at 14.53 percent, 14.77 percent, 14.89 percent, 14.82 percent, 14.81 percent, and 14.76 percent.
We expect overnight rates to remain elevated for most of the coming week and hence short end bills. Bonds would likely trade within a -10/+10 band as the market looks to the primary auction to get a wider gauge of investor interest.
(C) Citibank Nigeria
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