INDICATIONS may have emerged that the moderating pressure on the Naira, which recorded a 72 kobo week-on-week gain against the dollar last week, made the Central Bank of
Specifically, at the RDAS auctions, the CBN offered
Last week, the inter-bank money market rates inched higher at the beginning of the week, as liquidity tightened further on account of provisions made for Wednesday's Retail Dutch Auction System (RDAS) of the Central Bank of
Call and Open Buy Back rates climbed 200bps apiece to 14.3 per cent and 14 per cent respectively on Monday, while they remained flat at the interbank money market up till midweek.
However, the distributed revenue of the
This however, offset the RDAS provision (outflow), enabling the benchmark Call and OBB rates to decline 292bps and 283bps to 11.5 per cent and 11.2 per cent respectively.
Meanwhile, the bearish trend in the bond market, which had reigned for a while, halted last week, as bond prices rose, though with 10 basis points (bps) week-on-week decline in average yield to 11.6 per cent.
However, speculations are rife that there would be a marginal drop in the average yield in the bond market this week on the back of improved confidence in the Nigerian bond market as
Yields on the shorter term dated bonds declined the most, with the FGN
Despite the bullish sentiment in the market, the FGN
This was attributable to renewed foreign investors' appetite with expectation of a future decline in yields in the medium to long term.
The details of the planned inclusion of the FGN's 2024 bond in the
Upon inclusion, the FGN's 2024 bond will be the fourth Nigerian bond in the
However, expectations are now high that the inclusion would deepen foreign participation in the FGN bond market and also improve the overall liquidity of the FGN bond market.
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