DAILY MARKET REPORT: FIXED INCOME, MONEY MARKET AND FX – JUNE 21 2017

0

News Update:

The World Bank has approved two Programme-for-Results operations totaling $961m to support Nigeria’s federal and state governments in their effort to foster inclusion and revive growth, in alignment with the Economic Recovery and Growth Plan of the Federal Government of Nigeria for 2017–2020.
Source: Punch

The Bond market continued on a bearish run with trades skewed towards the short end of the curve.The 2019 and 2022 bonds yields inched up the most today (7bps) due to sell pressure by counterparties. This resulted in an average yield increase of 4bps across the entire bond yield curve. We expect the market to be moderately bullish tomorrow as investors who missed out of the bond auction come to the secondary market to fill their demand.

The Treasury bills market was largely bearish today due to profit taking activities by counterparties, coupled with the ample liquidity in the Mon- ey Market. Consequently, T-bills yields increased by 25bps across the en- tire yield curve. We expect the sell-off to moderate tomorrow as market liquidity improves significantly.

OBB and O/N rates moderated further to 18.00% and 19.00% as commer- cial banks could access the SLF window to fund their obligations. We ex- pect interest rates to decline tomorrow as N153billion OMO T-bills ma- ture into the system. The CBN will be poised to manage excess liquidity by floating OMO.

ECONOMIC INDICATORS
Inflation (YoY)16.25%
Exchange Rate ($)N305.85
MPR14.00%
Foreign Reserves$30.21Bn
Brent Crude$45.83

 

FGN Bonds
DescriptionBid (%)Offer (%)Day Change (%)
16.00 29-Jun-1916.6116.540.09
15.54 13-Feb-2016.4416.370.05
14.50 15-Jul-2116.4116.340.06
16.39 27-Jan-2216.2316.160.02
14.20 14-Mar-2415.9615.890.04
12.50 22-Jan-2616.1916.120.04
12.50 22-Jan-2716.3216.250.03
12.15 18-Jul-3416.0615.990.01
12.40 18-Mar-3616.0716.000.00
FGN Treasury Bills
DescriptionBid (%)Offer (%)Day Change (%)
3-Aug-1718.5018.250.10
14-Sep-1715.2515.00(0.40)
5-Oct-1718.9018.650.30
2-Nov-1718.9518.700.35
4-Jan-1819.0018.750.30
1-Feb-1818.7018.450.10
1-Mar-1818.5018.250.00
5-Apr-1818.6018.350.10
3-May-1818.5018.250.00

 

Money Market Rates
Current (%)Previous (%)
Open Buy Back (OBB)18.0029.50
Overnight (O/N)19.0034.50
FX Market
Current (N/$)Previous ( N/$)
Interbank305.85305.80
CBN SMIS320.00320.00
I&E FX Window365.86361.67
Parallel Market365.50366.00
Primary Market Auction Results
NTB  – 21 June 2017
TenorRate (%)Offer (NBn)Sub (N’bn)Sale (N’bn)
91 days
182 days
364 days
FGN Bonds – 21 June 2017
TenorRate (%)Offer (NBn)Sub (N’bn)Sale (N’bn)
21-Jun16.190040.0012.524.22
27-Mar16.190050.0057.3530.25
Apr-3716.196550.0088.2464.79
OMO – 20 June 2017
TenorRate (%)Offer (NBn)Sub (N’bn)Sale (N’bn)
170 day18.005.001.321.32
345 day18.6010.0012.4410.00