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 |
MPR | 14.00% |
Foreign Reserves | $30.21Bn |
Brent Crude | $45.83 |
FGN Bonds | |||||
Description | Bid (%) | Offer (%) | Day Change (%) | ||
16.00 29-Jun-19 | 16.61 | 16.54 | 0.09 | ||
15.54 13-Feb-20 | 16.44 | 16.37 | 0.05 | ||
14.50 15-Jul-21 | 16.41 | 16.34 | 0.06 | ||
16.39 27-Jan-22 | 16.23 | 16.16 | 0.02 | ||
14.20 14-Mar-24 | 15.96 | 15.89 | 0.04 | ||
12.50 22-Jan-26 | 16.19 | 16.12 | 0.04 | ||
12.50 22-Jan-27 | 16.32 | 16.25 | 0.03 | ||
12.15 18-Jul-34 | 16.06 | 15.99 | 0.01 | ||
12.40 18-Mar-36 | 16.07 | 16.00 | 0.00 | ||
FGN Treasury Bills | |||||
Description | Bid (%) | Offer (%) | Day Change (%) | ||
3-Aug-17 | 18.50 | 18.25 | 0.10 | ||
14-Sep-17 | 15.25 | 15.00 | (0.40) | ||
5-Oct-17 | 18.90 | 18.65 | 0.30 | ||
2-Nov-17 | 18.95 | 18.70 | 0.35 | ||
4-Jan-18 | 19.00 | 18.75 | 0.30 | ||
1-Feb-18 | 18.70 | 18.45 | 0.10 | ||
1-Mar-18 | 18.50 | 18.25 | 0.00 | ||
5-Apr-18 | 18.60 | 18.35 | 0.10 | ||
3-May-18 | 18.50 | 18.25 | 0.00 |
Money Market Rates | |||||||
Current (%) | Previous (%) | ||||||
Open Buy Back (OBB) | 18.00 | 29.50 | |||||
Overnight (O/N) | 19.00 | 34.50 | |||||
FX Market | |||||||
Current (N/$) | Previous ( N/$) | ||||||
Interbank | 305.85 | 305.80 | |||||
CBN SMIS | 320.00 | 320.00 | |||||
I&E FX Window | 365.86 | 361.67 | |||||
Parallel Market | 365.50 | 366.00 | |||||
Primary Market Auction Results | |||||||
NTB – 21 June 2017 | |||||||
Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | |||
91 days | |||||||
182 days | |||||||
364 days | |||||||
FGN Bonds – 21 June 2017 | |||||||
Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | |||
21-Jun | 16.1900 | 40.00 | 12.52 | 4.22 | |||
27-Mar | 16.1900 | 50.00 | 57.35 | 30.25 | |||
Apr-37 | 16.1965 | 50.00 | 88.24 | 64.79 | |||
OMO – 20 June 2017 | |||||||
Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | |||
170 day | 18.00 | 5.00 | 1.32 | 1.32 | |||
345 day | 18.60 | 10.00 | 12.44 | 10.00 |