“News Update:
The Minister of Finance, Mrs. Kemi Adeosun Thursday said the country has no choice but to continue to borrow in other to implement the Federal Government’s Economic Recovery and Growth Plan. The minister said this following recent report on comments she allegedly made about Nigeria’s debt strat- egy and ability to borrow. She said that in addition to borrowing, the government was working to- wards having a diversified revenue base to ensure that the country does not continue to overly rely on debt to fund the budget. – Punch”
“The bond market was quiet for most part of the trading session, however, towards the close of market, we witnessed some sell off on the 2024 and 2034 bond maturities. Consequently, yields increased marginally by an average of 2bps across the curve. We expect market to remain calm with a slight bullish bias next week due to lower inflation expectations. Data will be released on Monday by the NBS.
The T-bills market was scantily traded in today’s session with bullish senti- ments observed on the short end (average of 51bps decline). The medium and long end traded thinly with very minimal trading activity due to the continued issuance of OMO T-bills by the CBN. A total of N25.76billion 363day OMO T- bills were sold by the CBN at 18.55%. Anticipated cash mop up by the CBN via the issuance of OMO T-bills will continue to dampen trading activity especially on the medium and long end of the curve.
The OBB and O/N rates closed slightly above the previous day’s rate at 9.00% and 9.75% despite a significant squeeze in market liquidity resulting from the FGN Bond auction debit today. Net market liquidity is estimated at N99billion negative as at close of business today. We expect the CBN to continue with its OMO issuance to check liquidity even as a inflows from OMO repayments and bond coupon payments are expected to improve liquidity in the coming week.”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.25% |
| Exchange Rate ($) | N305.90 |
| MPR | 14.00% |
| Foreign Reserves | $30.36Bn |
| Brent Crude | $48.95 |
| FGN Bonds | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 16.00 29-Jun-19 | 16.61 | 16.54 | 0.01 | |||
| 15.54 13-Feb-20 | 16.42 | 16.35 | 0.02 | |||
| 14.50 15-Jul-21 | 16.31 | 16.24 | 0.01 | |||
| 16.39 27-Jan-22 | 16.17 | 16.10 | 0.03 | |||
| 14.20 14-Mar-24 | 16.06 | 15.99 | 0.07 | |||
| 12.50 22-Jan-26 | 16.32 | 16.25 | 0.02 | |||
| 16.29 17-Mar-27 | 16.27 | 16.20 | 0.00 | |||
| 12.15 18-Jul-34 | 16.09 | 16.02 | 0.06 | |||
| 12.40 18-Mar-36 | 16.07 | 16.00 | 0.02 | |||
| 16.25 18-Apr-37 | 16.24 | 16.17 | 0.00 | |||
| Treasury Bills | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 3-Aug-17 | 17.25 | 17.00 | (0.25) | |||
| 14-Sep-17 | 17.25 | 17.00 | 0.30 | |||
| 19-Oct-17 | 14.25 | 14.00 | (1.65) | |||
| 2-Nov-17 | 18.95 | 18.70 | (0.05) | |||
| 7-Dec-17 | 18.75 | 18.50 | (0.05) | |||
| 4-Jan-18 | 18.90 | 18.65 | 0.05 | |||
| 1-Feb-18 | 18.70 | 18.45 | 0.00 | |||
| 1-Mar-18 | 18.70 | 18.45 | 0.00 | |||
| 5-Apr-18 | 18.70 | 18.45 | 0.00 | |||
| 3-May-18 | 18.70 | 18.45 | 0.10 | |||
| 14-Jun-18 | 18.70 | 18.45 | 0.05 | |||
| 5-Jul-18 | 18.70 | 18.45 | 0.10 | |||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 5.98 | (0.02) |
| FGN | 7.875 16-Feb-32 | 7.01 | (0.01) |
| First Bank | 6.488 23-Jul-21 | 10.80 | (0.01) |
| Eco bank | 8.75 14-Aug-21 | 11.91 | 0.01 |
| Access Bank | 10.50 19-Oct-21 | 8.50 | 0.01 |
| Zenith Bank | 7.375 30-May-22 | 7.96 | 0.04 |
| UBA | 7.75 8-Jun-22 | 8.82 | (0.11) |
| Money Market Rates | ||||||||
| Current (%) | Previous (%) | |||||||
| Open Buy Back (OBB) | 9.00 | 7.33 | ||||||
| Overnight (O/N) | 9.75 | 8.25 | ||||||
| FX Market | ||||||||
| Current (N/$) | Previous ( N/$) | |||||||
| Interbank | 305.90 | 305.95 | ||||||
| CBN SMIS | 320.00 | 320.00 | ||||||
| I&E FX Window | 362.83 | 362.80 | ||||||
| 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 – 14 July 2017 | ||||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | ||||
| 195 day | Nil | 5.00 | Nil | Nil | ||||
| 363 day | 18.55 | 50.00 | 25.76 | 25.76 | ||||
Sources: FMDQ, CBN, Bloomberg, Zedcrest research
