“News Update:
The Debt Management office of Nigeria has released is Bond Issuance calendar for the third quarter of 2017. It intends to raise a total of N360billion — N450billion from issuance of the July 2021, March 2027 and April 2037 bonds. The auctions for the third quarter would take place on 12 July, 23 August and 20 September.”
“The Bond market traded on a flat note today with some buys on the 2036s and sell on the 2021s, 2026s and 2027 bond maturities. Consequently, yields compressed by an average of 2bps across the curve. Market sentiments remained unchanged following the release of the bond offer calendar for Q3 2017 which was not far from market expectation. We expect the market to remain client driven ahead of the bond auction next week.
The T-bills market traded on a relatively calm note today with some demand on the short and medium end of the curve. The long end of the curve re- mained flat as market players took their demand to the T-bills PMA by the CBN. Consequently, Yields declined by an average of 3bps across the curve. We expect market activity in subsequent sessions to be driven by liquidity conditions in the money market.
The OBB and O/N rates rose significantly higher in today’s session to 78.33% and 80.58%. This was as a result of the tight liquidity condition of the money market. Market Liquidity is estimated at N54billion negative as at close of business today. We expect rates to trend southwards in tomorrow’s session due to an expected inflow of N177billion from OMO T-bill maturities.”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.25% |
| Exchange Rate ($) | N305.50 |
| MPR | 14.00% |
| Foreign Reserves | $30.32Bn |
| Brent Crude | $47.90 |
| FGN Bonds | |||||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | ||||||
| 16.00 29-Jun-19 | 16.51 | 16.44 | 0.00 | ||||||
| 15.54 13-Feb-20 | 16.44 | 16.37 | 0.00 | ||||||
| 14.50 15-Jul-21 | 16.31 | 16.24 | 0.02 | ||||||
| 16.39 27-Jan-22 | 16.13 | 16.06 | (0.01) | ||||||
| 14.20 14-Mar-24 | 15.90 | 15.83 | 0.00 | ||||||
| 12.50 22-Jan-26 | 16.16 | 16.09 | 0.04 | ||||||
| 16.29 17-Mar-27 | 16.20 | 16.13 | 0.02 | ||||||
| 12.15 18-Jul-34 | 15.96 | 15.89 | (0.01) | ||||||
| 12.40 18-Mar-36 | 15.95 | 15.88 | (0.04) | ||||||
| FGN Treasury Bills | |||||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | ||||||
| 3-Aug-17 | 19.00 | 18.75 | 0.00 | ||||||
| 14-Sep-17 | 16.00 | 15.75 | (0.30) | ||||||
| 19-Oct-17 | 18.00 | 17.75 | 0.00 | ||||||
| 2-Nov-17 | 18.90 | 18.65 | 0.00 | ||||||
| 7-Dec-17 | 18.25 | 18 | 0.15 | ||||||
| 4-Jan-18 | 18.55 | 18.3 | (0.35) | ||||||
| 1-Feb-18 | 18.70 | 18.45 | 0.00 | ||||||
| 1-Mar-18 | 18.60 | 18.35 | 0.00 | ||||||
| 5-Apr-18 | 18.60 | 18.35 | 0.15 | ||||||
| 3-May-18 | 18.45 | 18.2 | 0.00 | ||||||
| 14-Jun-18 | 18.45 | 18.2 | 0.00 | ||||||
| Eurobonds | |||||||||
| Issuer | Description | Yield (%) | Day Change (%) | ||||||
| FGN | 6.38 12-Jul-23 | 5.96 | 0.17 | ||||||
| FGN | 7.875 16-Feb-32 | 7.06 | 0.11 | ||||||
| First Bank | 6.488 23-Jul-21 | 10.74 | (0.34) | ||||||
| Ecobank | 8.75 14-Aug-21 | 11.96 | 0.04 | ||||||
| Access Bank | 10.50 19-Oct-21 | 8.47 | 0.03 | ||||||
| Zenith Bank | 7.375 30-May-22 | 7.79 | 0.02 | ||||||
| UBA | 7.75 8-Jun-22 | 8.71 | 0.04 | ||||||
| Money Market Rates | ||||
| Current (%) | Previous (%) | |||
| Open Buy Back (OBB) | 78.33 | 44.17 | ||
| Overnight (O/N) | 80.58 | 50.92 | ||
| FX Market | ||||
| Current (N/$) | Previous ( N/$) | |||
| Interbank | 305.50 | 305.95 | ||
| CBN SMIS | 320.00 | 320.00 | ||
| I&E FX Window | 365.00 | 363.33 | ||
| Parallel Market | 364.50 | 364.00 | ||
| Primary Market Auction Results | ||||
| NTB – 05 July 2017 | ||||
| Tenor | Rate (%) | Offer (N’bn) | Sub (N’bn) | Sale (N’bn) |
| 91 days | 13.50 | 35.00 | 28.84 | 28.69 |
| 182 days | 17.50 | 22.00 | 21.41 | 21.25 |
| 364 days | 18.599 | 120.00 | 161.19 | 127.06 |
| 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 – 4 July 2017 | ||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) |
| 156 day | 17.90 | 5.00 | 0.11 | 0.11 |
| 338 day | 18.55 | 30.00 | 27.75 | 27.75 |
Sources: FMDQ, CBN, Bloomberg, Zedcrest research