At the IEFX window, the Naira gained 0.82%, 0.02% and 0.41% against GBP, USD and EUR to close at N464.59, N363.95 and N412.12 respectively.
In the parallel market, the Naira closed flat at N362/USD and N475/GBP. However, it appreciated by 0.24% to close at N415/EUR.
Going forward, we expect the FX market to continue to see support from CBN’s intervention sales.
· Following the maturity of N284billion worth of OMO bills today, money market rates declined today as the Overnight and Open Buy Back rates decreased by 528bps and 511bps to close at 11.93% and 11.50% respectively.
· The bond market was negative today as yields increased across most tenors. Consequently, the yields on the 5yr and 7yrbenchmark bonds increased by 5bps and 4bps to close at 14.97% and 15.16% respectively. However, the yields on the 10yr benchmark bond closed flat at 15.39%.
· In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation.