“News Update:
The International Monetary Fund (IMF) on Monday predicted that the Nigerian econo- my would expand by 1.9 per cent in 2018, higher than the 1.2 per cent it estimated for South Africa. In addition, the multilateral institution projected that Nigeria would exit the biting economic recession this year with a slim economic growth of 0.8 per cent, just as it predicted that South Africa, would also record one per cent – THISDAY”
“The bond market was slightly bearish in today’s session with selloffs witnessed especially on the 2024 and 2036 bonds (yields on the bonds rose by 3bps aver- age). There was however some buys witnessed on the 2026 bond as yields on the bond declined by 4bps. Average bond yields stayed flat as other maturities witnessed minimal trades. We expect selling pressures to persist tomorrow on the backdrop of relatively weak demand for FGN bonds.
The T-bills market traded on a bullish note with demand skewed to the short end supported by stable liquidity in the money market. The medium and long end were scantily traded as market players shifted their demand to the OMO conducted by the CBN. The CBN sold a total of N201million (191day) and N45.13billion (338 day) OMO bills with rates clearing at 17.945% and 18.55% respectively. We expect the market to market to trade with mixed sentiments tomorrow as the CBN is likely to continue with its OMO auction.
The Money market rates trended slightly higher in today’s session with the OBB and O/N rates closing at 18.33% and 19.17% due to the OMO auction conducted by the CBN to manage market liquidity. Net Market Liquidity is estimated at N66billion positive as at close of business today. We expect rates to trend slightly higher tomorrow, however inflows from FAAC disbursements, OMO maturities and bond coupon payments are expected to ease market liquidity towards the end of the week.”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.10% |
| Exchange Rate ($) | N305.75 |
| MPR | 14.00% |
| Foreign Reserves | $30.51Bn |
| Brent Crude | $49.53 |
| FGN Bonds | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 16.00 29-Jun-19 | 16.79 | 16.72 | 0.00 | |||
| 15.54 13-Feb-20 | 16.62 | 16.55 | 0.00 | |||
| 14.50 15-Jul-21 | 16.38 | 16.31 | (0.01) | |||
| 16.39 27-Jan-22 | 16.25 | 16.18 | 0.02 | |||
| 14.20 14-Mar-24 | 16.32 | 16.25 | 0.02 | |||
| 12.50 22-Jan-26 | 16.30 | 16.23 | (0.04) | |||
| 16.29 17-Mar-27 | 16.27 | 16.20 | 0.00 | |||
| 12.15 18-Jul-34 | 16.20 | 16.13 | 0.03 | |||
| 12.40 18-Mar-36 | 16.23 | 16.16 | 0.05 | |||
| 16.25 18-Apr-37 | 16.33 | 16.26 | (0.02) | |||
| Treasury Bills | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 2-Nov-17 | 18.40 | 18.15 | (0.15) | |||
| 7-Dec-17 | 18.55 | 18.30 | (0.15) | |||
| 4-Jan-18 | 18.50 | 18.25 | 0.00 | |||
| 1-Feb-18 | 18.10 | 17.85 | 0.00 | |||
| 1-Mar-18 | 18.15 | 17.90 | (0.10) | |||
| 5-Apr-18 | 18.55 | 18.30 | 0.00 | |||
| 3-May-18 | 18.50 | 18.25 | (0.05) | |||
| 14-Jun-18 | 18.50 | 18.25 | 0.05 | |||
| 5-Jul-18 | 18.50 | 18.25 | 0.05 | |||
| Money Market Rates | ||||||||
| Current (%) | Previous (%) | |||||||
| Open Buy Back (OBB) | 18.33 | 17.33 | ||||||
| Overnight (O/N) | 19.17 | 18.83 | ||||||
| FX Market | ||||||||
| Current (N/$) | Previous ( N/$) | |||||||
| Interbank | 305.75 | 305.75 | ||||||
| CBN SMIS | 320.00 | 320.00 | ||||||
| I&E FX Window | 369.50 | 367.30 | ||||||
| Parallel Market | 362.80 | 364.00 | ||||||
| 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 – 25 July 2017 | ||||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | ||||
| 191 day | 17.945 | 10.00 | 0.20 | 0.20 | ||||
| 338 day | 18.55 | 50.00 | 45.13 | 45.13 | ||||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 5.71 | 0.01 |
| FGN | 7.875 16-Feb-32 | 6.84 | 0.01 |
| First Bank | 6.488 23-Jul-21 | 10.79 | 0.02 |
| Eco bank | 8.75 14-Aug-21 | 11.81 | (0.14) |
| Access Bank | 10.50 19-Oct-21 | 8.44 | 0.02 |
| Zenith Bank | 7.375 30-May-22 | 7.84 | 0.00 |
| UBA | 7.75 8-Jun-22 | 8.44 | 0.04 |
Sources: FMDQ, CBN, Bloomberg, Rexel BDC, Zedcrest research