News Update:
CBN Acting Director, Public Communications, Mr. Isaac Okoroafor has said that the CBN would not succumb to pressures to further devalue or float the Naira as that would esca- late inflation and worsen the economic situation in the country. He insisted that the CBN would continue to stabilize the Naira and resist any policy that would make it go beyond the current exchange rate of less than N400 per US Dollar. – Breaking Times.
“We witnessed weaker demand for bonds in today’s trading session as the strong appetite for bonds witnessed after the auction began to wane. Yields declined marginally by 2bps across the curve. We expect the market to trade on a relatively calm note in the coming week.
The T-bills market also traded on a quiet note with very little activity observed on the short end of the curve. Yields declined by 8bps across the curve as the CBN continued its daily supply of OMO T-bills to the market. The size and frequency of the CBN’s OMO T-bill sales would continue to influence market movement in the near term.
The Money market closed the week on a relatively calm note as the OBB and O/N rates closed at 8.75% and 9.50%, just slightly above the previous day’s figures. Market Liquidity is estimated at 137bn negative as at close of business today. We expect rates to trend southwards in the coming week due to FAAC inflows and OMO ma- turities.”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.25% |
| Exchange Rate ($) | N305.85 |
| MPR | 14.00% |
| Foreign Reserves | $30.22Bn |
| Brent Crude | $45.54 |
| FGN Bonds | |||||
| Description | Bid (%) | Offer (%) | Day Change (%) | ||
| 16.00 29-Jun-19 | 16.55 | 16.48 | (0.04) | ||
| 15.54 13-Feb-20 | 16.41 | 16.34 | (0.01) | ||
| 14.50 15-Jul-21 | 16.32 | 16.25 | 0.00 | ||
| 16.39 27-Jan-22 | 16.20 | 16.13 | (0.01) | ||
| 14.20 14-Mar-24 | 15.89 | 15.82 | (0.03) | ||
| 12.50 22-Jan-26 | 16.11 | 16.04 | (0.01) | ||
| 12.50 22-Jan-27 | 16.22 | 16.15 | (0.02) | ||
| 12.15 18-Jul-34 | 15.97 | 15.90 | (0.04) | ||
| 12.40 18-Mar-36 | 16.00 | 15.93 | 0.00 | ||
| FGN Treasury Bills | |||||
| Description | Bid (%) | Offer (%) | Day Change (%) | ||
| 3-Aug-17 | 15.35 | 15.10 | 0.00 | ||
| 14-Sep-17 | 19.00 | 18.75 | (0.30) | ||
| 5-Oct-17 | 18.70 | 18.45 | (0.45) | ||
| 2-Nov-17 | 18.95 | 18.70 | 0.00 | ||
| 4-Jan-18 | 18.70 | 18.45 | 0.00 | ||
| 1-Feb-18 | 18.50 | 18.25 | 0.00 | ||
| 1-Mar-18 | 18.60 | 18.35 | 0.00 | ||
| 5-Apr-18 | 18.50 | 18.25 | 0.00 | ||
| 3-May-18 | 18.60 | 18.35 | 0.00 | ||
| Money Market Rates | |||||||
| Current (%) | Previous (%) | ||||||
| Open Buy Back (OBB) | 8.75 | 8.50 | |||||
| Overnight (O/N) | 9.50 | 9.08 | |||||
| FX Market | |||||||
| Current (N/$) | Previous ( N/$) | ||||||
| Interbank | 305.85 | 305.85 | |||||
| CBN SMIS | 320.00 | 320.00 | |||||
| I&E FX Window | 362.16 | 363.00 | |||||
| Parallel Market | 366.00 | 366.00 | |||||
| Primary Market Auction Results | |||||||
| NTB – 21 June 2017 | |||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | |||
| 91 days | 13.50 | 28.12 | 28.12 | 28.12 | |||
| 182 days | 17.50 | 55.12 | 43.84 | 43.84 | |||
| 364 days | 18.65 | 50.00 | 82.25 | 61.29 | |||
| FGN Bonds – 21 June 2017 | |||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | |||
| Jun-21 | 16.1900 | 40.00 | 12.52 | 4.22 | |||
| Mar-27 | 16.1900 | 50.00 | 57.35 | 30.25 | |||
| Apr-37 | 16.1965 | 50.00 | 88.24 | 64.79 | |||
| OMO – 22 June 2017 | |||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | |||
| 167 day | 18.00 | 5.00 | 0.38 | 0.38 | |||
| 356 day | 18.60 | 20.00 | 41.78 | 20.00 | |||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 5.96 | (0.08) |
| FGN | 7.875 16-Feb-32 | 7.06 | (0.09) |
| Zenith Bank | 6.25 22-Apr-19 | 6.02 | (0.02) |
| Diamond Bank | 8.75 21-May-19 | 14.2 | (0.08) |
| First Bank | 6.488 23-Jul-21 | 11.16 | (0.07) |
| Ecobank | 8.75 14-Aug-21 | 12.21 | 0.35 |
| Access Bank | 10.50 19-Oct-21 | 8.39 | 0.02 |
Sources: FMDQ, CBN, Bloomberg, Zedcrest research