“News Update:
The Nigeria Mortgage Refinance Company (NMRC) will, within the third quarter of 2017 re-launch into the capital market with a second tranche bond issuance of N20bn to raise additional funds for hous- ing refinancing. The bond is the second tranche of the Series-1 of NMRC 15- year 14.9 per cent fixed rate under a N140 billion medium-term note programme due in 2030 and is part of government’s effort to finance the nation’s increasing housing deficit. NMRC also plans to issue to issue some Suk- kuk bonds of up to N2bn before the end of 2017. – Business Day”
“The Bond market continued on a bearish run today due to weak demand by market players. Bond yields trended up by 3bps as we saw moderate sell off on the 2019 and 2037 bond maturities. We expect this trend to persist in to- morrow’s session with more pressure on the short dated bonds as we contin- ue to see a tactical switch to higher yields on the long tenured T-bills.
The T-bills market traded with mixed sentiments with selling pressures on short tenured T-bills while improved demand was witnessed on the medium and long end due to spill over demand from the previous day’s auction and the absence of OMO during the trading session. The CBN later sold a total of N690million(196day) and N127billion (364day) OMO T-bills after market close with rates clearing at 17.95% and 18.55% respectively.
There was no change in the OBB and O/N rates which closed at the previous day’s levels of 4.83% and 5.21% (5.25%p). This was as a result of the continued stability in money market liquidity which is estimated at N206billion at close of business today. We expect the CBN to continue with its OMO issuances in order to check the rising market liquidity, however we see rates closing the week at these current levels.”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.10% |
| Exchange Rate ($) | N305.80 |
| MPR | 14.00% |
| Foreign Reserves | $30.36Bn |
| Brent Crude | $49.58 |
| FGN Bonds | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 16.00 29-Jun-19 | 16.77 | 16.70 | 0.04 | |||
| 15.54 13-Feb-20 | 16.58 | 16.51 | (0.03) | |||
| 14.50 15-Jul-21 | 16.38 | 16.31 | 0.04 | |||
| 16.39 27-Jan-22 | 16.21 | 16.14 | 0.03 | |||
| 14.20 14-Mar-24 | 16.21 | 16.14 | 0.03 | |||
| 12.50 22-Jan-26 | 16.32 | 16.25 | 0.01 | |||
| 16.29 17-Mar-27 | 16.27 | 16.20 | 0.04 | |||
| 12.15 18-Jul-34 | 16.16 | 16.09 | 0.04 | |||
| 12.40 18-Mar-36 | 16.15 | 16.08 | 0.03 | |||
| 16.25 18-Apr-37 | 16.32 | 16.25 | 0.04 | |||
| Treasury Bills | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 3-Aug-17 | 18.05 | 17.80 | 1.55 | |||
| 14-Sep-17 | 16.45 | 16.20 | 0.30 | |||
| 19-Oct-17 | 16.05 | 15.80 | 2.05 | |||
| 2-Nov-17 | 18.65 | 18.40 | (0.10) | |||
| 7-Dec-17 | 18.75 | 18.50 | 0.05 | |||
| 4-Jan-18 | 18.65 | 18.40 | (0.10) | |||
| 1-Feb-18 | 18.35 | 18.10 | 0.00 | |||
| 1-Mar-18 | 18.30 | 18.05 | (0.30) | |||
| 5-Apr-18 | 18.55 | 18.30 | (0.10) | |||
| 3-May-18 | 18.55 | 18.30 | 0.00 | |||
| 14-Jun-18 | 18.50 | 18.25 | (0.05) | |||
| 5-Jul-18 | 18.45 | 18.20 | (0.05) | |||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 5.82 | (0.04) |
| FGN | 7.875 16-Feb-32 | 6.90 | (0.01) |
| First Bank | 6.488 23-Jul-21 | 10.70 | (0.01) |
| Eco bank | 8.75 14-Aug-21 | 11.95 | 0.01 |
| Access Bank | 10.50 19-Oct-21 | 8.53 | 0.02 |
| Zenith Bank | 7.375 30-May-22 | 7.90 | (0.03) |
| UBA | 7.75 8-Jun-22 | 8.69 | (0.10) |
| Money Market Rates | ||||||||
| Current (%) | Previous (%) | |||||||
| Open Buy Back (OBB) | 4.83 | 4.83 | ||||||
| Overnight (O/N) | 5.21 | 5.25 | ||||||
| FX Market | ||||||||
| Current (N/$) | Previous ( N/$) | |||||||
| Interbank | 305.80 | 305.35 | ||||||
| CBN SMIS | 320.00 | 320.00 | ||||||
| I&E FX Window | 366.67 | 367.60 | ||||||
| Parallel Market | 364.50 | 364.50 | ||||||
| Primary Market Auction Results | ||||||||
| NTB – 19 July 2017 | ||||||||
| Tenor | Rate (%) | Offer (N’bn) | Sub (N’bn) | Sale (N’bn) | ||||
| 91 days | 13.4250 | 36.79 | 33.61 | 32.40 | ||||
| 182 days | 17.3989 | 39.18 | 27.43 | 26.60 | ||||
| 364 days | 18.5490 | 129.00 | 254.24 | 145.96 | ||||
| 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 – 20 July 2017 | ||||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | ||||
| 196 day | 17.95 | 40.00 | 0.94 | 0.69 | ||||
| 364 day | 18.55 | 100.00 | 127.01 | 127.01 | ||||
Sources: FMDQ, CBN, Bloomberg, Zedcrest research