News Update:
The African Export Import (AFREXIM) Bank has said it will in the next five years disburse a total of N7.647 trillion ($25 billion) to support Intra -African trade within the African continent. This is just as the bank also said in line with this initiative, it would today sign a N305.900 billion ($1 billion) loan with Dangote Cement in Nigeria as part of effort to support businesses in Africa. – ThisDay
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.25% |
| Exchange Rate ($) | N305.90 |
| MPR | 14.00% |
| Foreign Reserves | $30.23Bn |
| Brent Crude | $47.64 |
“The bond market continued to trade on a weak note today with only few trades executed during the trading session. Consequently, Yields declined marginally by a single basis point across the curve. The slowdown in mar- ket activity can be largely attributed to the decline in investors’ appetite for FGN bonds owing to the attractive short term T-bills yields , currently trading within the 18.00% -22.00% band. We expect the market to remain sluggish as market players close their books for the month.
The buoyant naira liquidity in the Money Market stimulated demand for T-bills with attractive yields with special emphasis on short-dated maturi- ties (July to October 2017 maturities) . Yields declined by an average of 11bps across the curve (30bps on the short end). We expect the bullish trend to continue tomorrow, with demand extending into the medium and long end of the curve. The “no sale” at today’s OMO session by the CBN may further aggravate bullish sentiments tomorrow .
The OBB and O/N rates fell to 4.00% and 4.53% due to increased market liquidity coming from OMO T-bills maturities of N236billion credited to- day. We expect the market to remain stable at these levels as we continue to watch out for any significant liquidity management actions by the CBN.”
| FGN Bonds | |||||
| Description | Bid (%) | Offer (%) | Day Change (%) | ||
| 16.00 29-Jun-19 | 16.58 | 16.51 | 0.03 | ||
| 15.54 13-Feb-20 | 16.46 | 16.39 | 0.03 | ||
| 14.50 15-Jul-21 | 16.32 | 16.25 | 0.00 | ||
| 16.39 27-Jan-22 | 16.19 | 16.12 | (0.01) | ||
| 14.20 14-Mar-24 | 15.91 | 15.84 | 0.00 | ||
| 12.50 22-Jan-26 | 16.15 | 16.08 | 0.04 | ||
| 12.50 22-Jan-27 | 16.24 | 16.17 | (0.01) | ||
| 12.15 18-Jul-34 | 15.97 | 15.90 | (0.01) | ||
| 12.40 18-Mar-36 | 15.98 | 15.91 | (0.02) | ||
| FGN Treasury Bills | |||||
| Description | Bid (%) | Offer (%) | Day Change (%) | ||
| 5-Oct-17 | 18.25 | 18.00 | (0.45) | ||
| 2-Nov-17 | 18.50 | 18.25 | (0.15) | ||
| 7-Dec-17 | 18.15 | 17.90 | (0.15) | ||
| 4-Jan-18 | 18.55 | 18.30 | (0.20) | ||
| 1-Feb-18 | 18.55 | 18.30 | 0.00 | ||
| 1-Mar-18 | 18.40 | 18.15 | (0.05) | ||
| 5-Apr-18 | 18.60 | 18.35 | 0.00 | ||
| 3-May-18 | 18.50 | 18.25 | 0.00 | ||
| 14-Jun-18 | 18.60 | 18.35 | 0.05 | ||
| Money Market Rates | |||||||
| Current (%) | Previous (%) | ||||||
| Open Buy Back (OBB) | 4.00 | 9.00 | |||||
| Overnight (O/N) | 4.58 | 9.33 | |||||
| FX Market | |||||||
| Current (N/$) | Previous ( N/$) | ||||||
| Interbank | 305.90 | 305.90 | |||||
| CBN SMIS | 320.00 | 320.00 | |||||
| I&E FX Window | 368.00 | 368.67 | |||||
| Parallel Market | 364.00 | 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 – 29 June 2017 | |||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | |||
| 140 day | N/A | 5.00 | 6.50 | N/A | |||
| 364 day | N/A | 50.00 | 72.81 | N/A | |||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 5.73 | (0.02) |
| FGN | 7.875 16-Feb-32 | 6.88 | (0.02) |
| First Bank | 6.488 23-Jul-21 | 11.18 | 0.09 |
| Ecobank | 8.75 14-Aug-21 | 11.91 | 0.03 |
| Access Bank | 10.50 19-Oct-21 | 8.45 | 0.00 |
| Zenith Bank | 7.375 30-May-22 | 7.74 | 0.36 |
| UBA | 7.75 8-Jun-22 | 8.68 | 0.93 |
Sources: FMDQ, CBN, Bloomberg, Zedcrest research
