News Update:
The total pension assets under the Contributory Pension Scheme rose to N6.4tn at the end of April this year. The National Pension Commission revealed that 55 per cent of the fund was invested in FGN bonds, and about 15 per cent of the total invested in treasury bills – Punch Newspaper
“The Fixed Income market opened the week on a bearish note due to the reduced liquidity in the Money Market after the humongous sale of OMO T-bills by the CBN last week . The bearish mood was further supported by the announcement of a $100million wholesale FX in- tervention auction and N15billion OMO auction for settlement day.
The short end of the T-bills curve increased by 200bps amid the sale of N21billion OMO T-bills by the CBN. The bond market al-
so witnessed some selloff as traders take positions ahead of the auction slated for this Wednesday. We expect the market players to remain bearish towards the market as the illiquidity in the Money Market persist.
Interest rates continued on an upward trajectory amid the cash crunch in the Money Market due to OMO T-bills sales and FX inter- ventions. Market Liquidity is estimated to close at N4billion negative as at COB today. We expect interest rates to remain elevated as CBN continues its FX interventions and OMO auctions.”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.25% |
| Exchange Rate ($) | N305.80 |
| MPR | 14.00% |
| Foreign Reserves | $30.21Bn |
| Brent Crude | $47.54 |
| FGN Bonds | |||||
| Description | Bid (%) | Offer (%) | Day Change (%) | ||
| 16.00 29-Jun-19 | 16.47 | 16.4 | (0.01) | ||
| 15.54 13-Feb-20 | 16.35 | 16.28 | (0.01) | ||
| 14.50 15-Jul-21 | 16.32 | 16.25 | 0.02 | ||
| 16.39 27-Jan-22 | 16.17 | 16.1 | 0.01 | ||
| 14.20 14-Mar-24 | 15.88 | 15.81 | (0.02) | ||
| 12.50 22-Jan-26 | 16.08 | 16.01 | 0.03 | ||
| 12.50 22-Jan-27 | 16.22 | 16.15 | 0.05 | ||
| 12.15 18-Jul-34 | 16.01 | 15.94 | 0.06 | ||
| 12.40 18-Mar-36 | 16.03 | 15.96 | 0.04 | ||
| FGN Treasury Bills | |||||
| Description | Bid (%) | Offer (%) | Day Change (%) | ||
| 3-Aug-17 | 19.00 | 18.75 | 0.60 | ||
| 14-Sep-17 | 17.50 | 17.25 | 2.00 | ||
| 5-Oct-17 | 18.60 | 18.35 | (0.05) | ||
| 2-Nov-17 | 18.85 | 18.6 | 0.05 | ||
| 4-Jan-18 | 18.55 | 18.3 | 0.05 | ||
| 1-Feb-18 | 18.70 | 18.45 | 0.15 | ||
| 1-Mar-18 | 18.50 | 18.25 | 0.00 | ||
| 5-Apr-18 | 18.60 | 18.35 | 0.25 | ||
| 3-May-18 | 18.60 | 18.35 | 0.10 | ||
| Money Market Rates | |||||||
| Current (%) | Previous (%) | ||||||
| Open Buy Back (OBB) | 50.00 | 15.17 | |||||
| Overnight (O/N) | 53.33 | 15.67 | |||||
| FX Market | |||||||
| Current (N/$) | Previous ( N/$) | ||||||
| Interbank | 305.80 | 305.75 | |||||
| CBN SMIS | 320.00 | 320.00 | |||||
| I&E FX Window | 366.20 | 365.29 | |||||
| Parallel Market | 366.00 | 365.50 | |||||
| Primary Market Auction Results | |||||||
| NTB – 14 June 2017 | |||||||
| Tenor | Rate (%) | Offer (N’Bn) | Sub (N’Bn) | Sale (N’Bn) | |||
| 91 days | 13.50 | 39.06 | 39.20 | 39.06 | |||
| 182 days | 17.30 | 23.02 | 24.79 | 23.02 | |||
| 364 days | 18.69 | 174.64 | 201.20 | 174.64 | |||
| FGN Bond Offer– 21 June 2017 | |||||||
| Tenor | Rate (%) | Offer (N’Bn) | Sub (N’Bn) | Sale (N’Bn) | |||
| Jun-21 | TBD | 40.00 | N/A | N/A | |||
| Mar-27 | TBD | 50.00 | N/A | N/A | |||
| Apr-37 | TBD | 50.00 | N/A | N/A | |||
| OMO – 19 June 2017 | |||||||
| Tenor | Rate (%) | Offer (N’Bn) | Sub (N’Bn) | Sale (N’Bn) | |||
| 185 day | 18.00 | 5.00 | 4.61 | 4.61 | |||
| 346 day | 18.60 | 10.00 | 16.85 | 16.85 | |||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 5.8 | 0.07 |
| FGN | 7.875 16-Feb-32 | 6.96 | 0.01 |
| Fidelity Bank | 6.88 09-May-18 | 12.74 | (0.17) |
| GT Bank | 6.00 08-Nov-18 | 4.39 | 0.00 |
| Zenith Bank | 6.25 22-Apr-19 | 5.55 | 0.10 |
| First Bank | 8.25 07-Aug-20 | 10.65 | 0.01 |
| Access Bank | 7.677 24-Jun-21 | 9.45 | 0.04 |
Sources: FMDQ, CBN, Bloomberg, Zedcrest research
