“News Update:
The federal government Monday disclosed that it would restructure the total debts owed to service providers in Nigeria’s privatised electricity market by the 11 electricity distribution companies (Discos) with the aim of easing the debt burden and allowing them to source for monies to fund their capital projects. – Thisday”
“The bond market remained lethargic with minimal activities witnessed during the trading session. We saw some local demand for the 2020 and 2022 bonds while other maturities traded flat. Yields compressed by 1bp across the curve. We expect a quiet trading session tomorrow as the FGN bond auction takes center stage.
The T-bills market traded with mixed sentiments with some buys on the short end and profit taking on the medium and long end of the curve. Consequently, yields declined by an average of 61bps on the short end while the medium and long tenured bills appreciated by an average of 9bps. The CBN continued with its OMO auctions today, selling a total of N24.6billion OMO T-bills with rates clearing at 17.95% and 18.55% on the 199day and 360day maturities. We expect the market to remain largely driven by the liquidity conditions in the money market.
The liquidity conditions in the money market improved in today’s session as the OBB and O/N rates fell to 15% and 16.17% from 25% levels. This was as a result of cash inflows from Retail FX refunds by the CBN. Market Liquidity is estimated at N68billion negative as at close of business today. We expect rates to trend slightly higher tomorrow as the CBN continues to mop up liquidity via its daily OMO and FX auctions.”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.25% |
| Exchange Rate ($) | N306.00 |
| MPR | 14.00% |
| Foreign Reserves | $30.33Bn |
| Brent Crude | $47.64 |
| FGN Bonds | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 16.00 29-Jun-19 | 16.55 | 16.48 | 0.01 | |||
| 15.54 13-Feb-20 | 16.40 | 16.33 | (0.05) | |||
| 14.50 15-Jul-21 | 16.31 | 16.24 | (0.01) | |||
| 16.39 27-Jan-22 | 16.14 | 16.07 | (0.05) | |||
| 14.20 14-Mar-24 | 16.00 | 15.93 | 0.00 | |||
| 12.50 22-Jan-26 | 16.31 | 16.24 | 0.01 | |||
| 16.29 17-Mar-27 | 16.28 | 16.21 | 0.00 | |||
| 12.15 18-Jul-34 | 16.02 | 15.95 | 0.01 | |||
| 12.40 18-Mar-36 | 16.02 | 15.95 | 0.01 | |||
| FGN Treasury Bills | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 3-Aug-17 | 18.05 | 17.80 | (0.95) | |||
| 14-Sep-17 | 15.75 | 15.50 | (0.25) | |||
| 19-Oct-17 | 16.30 | 16.05 | (1.50) | |||
| 2-Nov-17 | 18.90 | 18.65 | 0.25 | |||
| 7-Dec-17 | 18.80 | 18.55 | 0.00 | |||
| 4-Jan-18 | 18.70 | 18.45 | 0.00 | |||
| 1-Feb-18 | 18.80 | 18.55 | 0.20 | |||
| 1-Mar-18 | 18.70 | 18.45 | 0.10 | |||
| 5-Apr-18 | 18.80 | 18.55 | 0.05 | |||
| 3-May-18 | 18.60 | 18.35 | 0.10 | |||
| 14-Jun-18 | 18.60 | 18.35 | 0.10 | |||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 6.14 | (0.19) |
| FGN | 7.875 16-Feb-32 | 7.12 | (0.17) |
| First Bank | 6.488 23-Jul-21 | 10.89 | 0.19 |
| Eco bank | 8.75 14-Aug-21 | 11.92 | (0.03) |
| Access Bank | 10.50 19-Oct-21 | 8.49 | (0.01) |
| Zenith Bank | 7.375 30-May-22 | 7.92 | 0.03 |
| UBA | 7.75 8-Jun-22 | 9.08 | 0.11 |
| 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 – 12 July 2017 | ||||
| Tenor | Offer (N’bn) | Expected Rates (%) | ||
| Jun-21 | 30 – 40 | 16.15 – 16.20 | ||
| Mar-27 | 45 – 55 | 16.15 – 16.20 | ||
| Apr-37 | 45 – 55 | 16.15 – 16.20 | ||
| OMO – 11 July 2017 | ||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) |
| 199 day | 17.95 | 5.00 | 0.306 | 0.306 |
| 360 day | 18.55 | 30.00 | 27.34 | 24.34 |
| Money Market Rates | ||||
| Current (%) | Previous (%) | |||
| Open Buy Back (OBB) | 15.00 | 25.33 | ||
| Overnight (O/N) | 16.17 | 28.17 | ||
| FX Market | ||||
| Current (N/$) | Previous ( N/$) | |||
| Interbank | 306.00 | 306.00 | ||
| CBN SMIS | 320.00 | 320.00 | ||
| I&E FX Window | 363.33 | 361.86 | ||
| Parallel Market | 365.00 | 365.00 | ||
Sources: FMDQ, CBN, Bloomberg, Zedcrest research
