Total value of commercial papers (CPs) quoted on FMDQ Exchange in January 2024 was ₦168.9 billion, representing a month-on-month (m/m) decrease of 31.44 per cent (₦77.44 billion) from the value of CPs quoted in December 2023.
FMDQ Securities Exchange said quoted CPs were issued by institutions from various sectors including financial services, manufacturing , health and pharmaceuticals, agriculture, retail, construction and general commerce.
As a result, the total outstanding value for CPs increased m/m by 8.12 per cent (₦66.7 billion) to ₦887.9 billion in January 2024.
Also, within the period, the yield spread between the three-month and 30-year sovereign fixed-income securities decreased m/m by 2.97ppts to 9.37ppts, indicating a flattening of the sovereign yield curve.
The exchange noted that real (inflation-adjusted) yields remained negative across
the yield curve in January 2024, declining further on the back of surging inflation which remains higher than policy interest rates and continues to outpace the increase in nominal yields.
Also, total turnover in the money market segment decreased m/m by 21.45 per cent (₦1.54 trillion) to ₦5.64 trillion in January 2024.
Last week, the total turnover in the FX spot and derivatives markets was $1,241.28 million, an increase of 39.4the FX Spot and derivatives markets per cent ($350.63 million) from $890.65 million reported during the week ending on February 23, 2024.
The exchange noted that the week-on-week (w/w) increase in the total turnover was driven by the 36.04 per cent ($319.89 million) and 1,024.67 per cent ($30.74 million) increases in the FX spot and FX derivatives turnover, respectively.
It explained further that the w/w increase in FX derivatives turnover was solely driven by the 1,024.67 per cent ($30.74 million) increase in FX forwards turnover, while there were no trades executed in both the Exchange Traded FX Futures and Cleared Naira-Settled Non-Deliverable Forwards (Cleared USD/NGN NDFs) markets.
