“News Update:
The Federal Executive Council (FEC) Wednesday put in motion the machinery for the payment of N2.7 trillion owed contractors, pensioners and state governments by the federal government in the past two decades. The Minister of Finance, Mrs. Kemi Adeosun, said the council approved a process for the validation and payment of liabilities inherited by the feder- al government since 1994. – Thisday”
“The bond market continued to trade on a relatively flat note in today’s session, with slight sell witnessed on the 2034 and 2036 maturities. Yields compressed by 2bps across the curve, as trading commenced on the 20yr April 2037 bond. We expect slight improvements in mar- ket activity as market players price in lower inflation rate expecta- tions.
The T-bills market traded on a slightly bullish note today with demand focused on the short end of the curve. This sentiment was supported by the significant improvement in market liquidity. The medium and long end traded flat due to the OMO auction conducted by the CBN. We expect the market to be bearish tomorrow as the N106billion FGN bond auction debit hits the system.
The OBB and O/N rates fell to 7.33% and 8.25% as at close of business today. This was as a result of improvement in market liquidity due to N89.96billion cash inflows from OMO repayments by the CBN. We expect interest rates to trend northward tomorrow due to FGN bond auction debits and anticipated OMO auctions by the CBN.”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.25% |
| Exchange Rate ($) | N305.95 |
| MPR | 14.00% |
| Foreign Reserves | $30.33Bn |
| Brent Crude | $48.01 |
| FGN Bonds | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 16.00 29-Jun-19 | 16.60 | 16.53 | 0.00 | |||
| 15.54 13-Feb-20 | 16.40 | 16.33 | 0.00 | |||
| 14.50 15-Jul-21 | 16.30 | 16.23 | 0.05 | |||
| 16.39 27-Jan-22 | 16.14 | 16.07 | 0.01 | |||
| 14.20 14-Mar-24 | 15.99 | 15.92 | 0.01 | |||
| 12.50 22-Jan-26 | 16.30 | 16.23 | 0.00 | |||
| 16.29 17-Mar-27 | 16.27 | 16.20 | 0.02 | |||
| 12.15 18-Jul-34 | 16.03 | 15.96 | 0.03 | |||
| 12.40 18-Mar-36 | 16.05 | 15.98 | 0.04 | |||
| 16.25 18-Apr-37 | 16.24 | 16.17 | 0.01 | |||
| Treasury Bills | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 3-Aug-17 | 17.50 | 17.25 | (0.55) | |||
| 14-Sep-17 | 16.95 | 16.70 | 1.20 | |||
| 19-Oct-17 | 15.90 | 15.65 | (0.40) | |||
| 2-Nov-17 | 19.00 | 18.75 | (0.05) | |||
| 7-Dec-17 | 18.80 | 18.55 | (0.10) | |||
| 4-Jan-18 | 18.85 | 18.60 | 0.00 | |||
| 1-Feb-18 | 18.70 | 18.45 | (0.10) | |||
| 1-Mar-18 | 18.70 | 18.45 | 0.00 | |||
| 5-Apr-18 | 18.70 | 18.45 | (0.15) | |||
| 3-May-18 | 18.60 | 18.35 | (0.10) | |||
| 14-Jun-18 | 18.65 | 18.40 | (0.05) | |||
| 5-Jul-18 | 18.60 | 18.35 | 0.00 | |||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 5.95 | (0.05) |
| FGN | 7.875 16-Feb-32 | 6.99 | (0.03) |
| First Bank | 6.488 23-Jul-21 | 10.83 | 0.02 |
| Eco bank | 8.75 14-Aug-21 | 11.93 | 0.03 |
| Access Bank | 10.50 19-Oct-21 | 8.50 | 0.01 |
| Zenith Bank | 7.375 30-May-22 | 7.92 | 0.00 |
| UBA | 7.75 8-Jun-22 | 8.83 | (0.10) |
| Money Market Rates | ||||||||
| Current (%) | Previous (%) | |||||||
| Open Buy Back (OBB) | 7.33 | 14.33 | ||||||
| Overnight (O/N) | 8.25 | 15.17 | ||||||
| FX Market | ||||||||
| Current (N/$) | Previous ( N/$) | |||||||
| Interbank | 305.95 | 305.95 | ||||||
| CBN SMIS | 320.00 | 320.00 | ||||||
| I&E FX Window | 362.80 | 366.25 | ||||||
| Parallel Market | 364.50 | 364.50 | ||||||
| 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 | Rate (%) | Offer (N’bn) | Sub (N’bn) | Sale (N’bn) | ||||
| Jun-21 | 16.2400 | 35.00 | 9.10 | 3.90 | ||||
| Mar-27 | 16.2500 | 50.00 | 55.31 | 47.01 | ||||
| Apr-37 | 16.2514 | 50.00 | 64.75 | 55.05 | ||||
| OMO – 13 July 2017 | ||||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | ||||
| 195 day | 17.95 | 5.00 | 0.125 | 0.125 | ||||
| 363 day | 18.55 | 40.00 | 28.29 | 28.29 | ||||
Sources: FMDQ, CBN, Bloomberg, Zedcrest research
