Nume Ekeghe
Trading exercise in Nigeria’s fixed-income market weakened in October, with whole traded face worth declining by 37.1 per cent to N25.81 trillion from N41.07 trillion recorded in September, as transactions throughout Treasury payments, Federal Government bonds, Open Market Operations (OMO) payments and Sukuk moderated.
Data from the Fixed Income Dashboard confirmed that the variety of trades additionally fell by 30.6 per cent to 8,090 in October, in contrast with 11,652 within the previous month, reflecting a broad-based slowdown in market exercise.
The decline, analysts imagine, was largely pushed by decreased transactions in OMO payments, which remained the dominant instrument within the fixed-income market however recorded a big contraction in turnover.
OMO payments accounted for N16.75 trillion in traded face worth in October, down 40.3 per cent from N28.05 trillion recorded in September. The variety of transactions within the instrument additionally declined to 3,602 from 5,485.
Despite the decline, OMO payments accounted for roughly 64.9 per cent of whole fixed-income turnover in October, in contrast with 68.3 per cent in September, underscoring their continued dominance available in the market.
Treasury payments additionally recorded weaker exercise, with traded face worth falling by 34.8 per cent to N3.91 trillion in October from N5.99 trillion in September.
The variety of Treasury payments transactions declined to 1,435 from 2,227, whereas the variety of individuals remained unchanged at 26.
Similarly, buying and selling in Federal Government of Nigeria (FGN) bonds moderated in the course of the evaluation interval. Their traded face worth declined by 26.9 per cent to N5.09 trillion in October from N6.96 trillion in September.
The variety of transactions fell to 3,020 from 3,889, whereas market participation declined barely to 24 from 25 individuals.
Sukuk recorded the smallest decline in traded worth among the many 4 devices, though exercise additionally weakened. Its traded face worth fell by 12.4 per cent to N58.53 billion in October from N66.79 billion in September.
The variety of Sukuk transactions declined to 33 from 51, whereas participation remained unchanged at seven.
Overall, the whole variety of market individuals declined barely to 29 in October from 30 in September. OMO Bills individuals fell to 28 from 30, whereas participation in Treasury payments remained at 26. The dashboard additionally confirmed a moderation in OMO invoice yields between the 2 months. The closing yield on OMO payments declined to 19.04 per cent in October from 20.15 per cent in September, whereas the weighted common yield fell to 18.71 per cent from 20.04 per cent.
The October dashboard additionally confirmed various yields throughout the FGN bond tenor spectrum, with closing yields typically ranging between 16.00 per cent and 17.00 per cent.
The mixed September and October dashboard confirmed that fixed-income transactions over the two-month interval amounted to N66.88 trillion, comprising 19,742 trades throughout the 4 instrument classes.
OMO payments accounted for the biggest share, with N44.80 trillion in traded face worth and 9,087 transactions. FGN bonds adopted with N12.05 trillion and 6,909 trades, whereas Treasury payments recorded N9.90 trillion and three,662 transactions. Sukuk accounted for N125.32 billion throughout 84 trades.
