Money market rates hit a 6-month high, after the OBB and OVN rates respectively appreciated by 48.33% and 50.83%, fixing the average MM rate at 85.83% (+49.58%). Though our liquidity gauge reflects a 2-day lag, we attribute the spike in rates to the liquidity crunch in the financial system, buoyed by the enforcement of the Treasury Single Account (TSA). Similarly, NIBOR trended north across all tenors, with the 6M tenor recording the highest rise of 2.46% to settle at 22.13%.
Activities across the shorter term instruments waned, as yields across all tenors trended north save for the yield on the 12M T-bills that pared marginally by 0.35%. At the close of today’s trading session, average yield across T-bills settled at 15.45%, implying a 0.27% rise compared to 15.18% in the prior trading day.
In the bond space, there was a bullish run on Off-the-Run Bonds as all yields trended south, save for the OCT-2019 bond yield that climbed by 0.07%. Conversely, same cannot be said about the Benchmark Bonds as yields trended north across most tenors.
Naira depreciated for the second consecutive trading day in the week, closing at NGN199.06/USD to peg the YtD return at -7.29%.