“News Update:
The Central Bank of Nigeria (CBN) yesterday said Nigeria’s manufacturing sector has rec- orded expansion in production activities for four consecutive times in its Purchasing Man- agers’ Index (PMI). The implication of this positive outcome which also confirms last quar- ter’s GDP growth recovery as well as last month’s inflation moderation are signs that the Nigerian economy may soon exit recession and return to the path of growth. – Guardian”
“There were no active trades in the fixed income market today ow- ing to the suspension of trading in the two-way quote market by the FMDQ. Activities in the market are expected to resume fully tomorrow, with bullish sentiments expected to prevail due to ex- pected cash inflows from OMO maturities and spill over demand from the T-bills PMA.
The OBB and O/N rates rose sharply from 5% levels yesterday to close today at 19.67% and 20.17% due to an estimated sale of N250billion special T-bills of 183 days tenor to banks at 17.20%, debited late yesterday from the system. Market liquidity is esti- mated at N75billion long at close of business today.
We expect rates to trend back lower as inflows from N85.42billion OMO ma- turities are expected to improve market liquidity, not discounting the possibility of another round of OMO auction by the CBN.”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.10% |
| Exchange Rate ($) | N305.60 |
| MPR | 14.00% |
| Foreign Reserves | $30.77Bn |
| Brent Crude | $51.50 |
| FGN Bonds | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 16.00 29-Jun-19 | 16.76 | 16.69 | 0.00 | |||
| 15.54 13-Feb-20 | 16.50 | 16.43 | 0.00 | |||
| 14.50 15-Jul-21 | 16.38 | 16.31 | 0.00 | |||
| 16.39 27-Jan-22 | 16.22 | 16.15 | 0.00 | |||
| 14.20 14-Mar-24 | 16.30 | 16.23 | 0.00 | |||
| 12.50 22-Jan-26 | 16.28 | 16.21 | 0.00 | |||
| 16.29 17-Mar-27 | 16.30 | 16.23 | 0.00 | |||
| 12.15 18-Jul-34 | 16.18 | 16.11 | 0.00 | |||
| 12.40 18-Mar-36 | 16.22 | 16.15 | 0.00 | |||
| 16.25 18-Apr-37 | 16.32 | 16.25 | 0.00 | |||
| Treasury Bills | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 2-Nov-17 | 18.35 | 18.10 | 0.00 | |||
| 7-Dec-17 | 18.20 | 17.95 | 0.00 | |||
| 4-Jan-18 | 18.55 | 18.30 | 0.00 | |||
| 1-Feb-18 | 18.05 | 17.80 | 0.00 | |||
| 1-Mar-18 | 18.15 | 17.90 | 0.00 | |||
| 5-Apr-18 | 18.50 | 18.25 | 0.00 | |||
| 3-May-18 | 18.50 | 18.25 | 0.00 | |||
| 14-Jun-18 | 18.50 | 18.25 | 0.00 | |||
| 5-Jul-18 | 18.55 | 18.30 | 0.00 | |||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 5.49 | (0.07) |
| FGN | 7.875 16-Feb-32 | 6.70 | (0.03) |
| First Bank | 6.488 23-Jul-21 | 10.58 | (0.03) |
| Eco bank | 8.75 14-Aug-21 | 11.78 | 0.00 |
| Access Bank | 10.50 19-Oct-21 | 8.33 | (0.03) |
| Zenith Bank | 7.375 30-May-22 | 7.77 | (0.02) |
| UBA | 7.75 8-Jun-22 | 8.20 | 0.00 |
| Money Market Rates | ||||||||
| Current (%) | Previous (%) | |||||||
| Open Buy Back (OBB) | 19.67 | 5.00 | ||||||
| Overnight (O/N) | 20.17 | 5.50 | ||||||
| FX Market | ||||||||
| Current (N/$) | Previous ( N/$) | |||||||
| Interbank | 305.60 | 305.60 | ||||||
| CBN SMIS | 320.00 | 320.00 | ||||||
| I&E FX Window | 368.50 | 366.59 | ||||||
| Parallel Market | 363.00 | 363.00 | ||||||
| Primary Market Auction Results | ||||||||
| NTB – 2 August 2017 | ||||||||
| Tenor | Rate (%) | Offer (N’bn) | Sub (N’bn) | Sale (N’bn) | ||||
| 91 days | 13.42 | 29.14 | 26.18 | 23.06 | ||||
| 182 days | 17.40 | 80.00 | 69.75 | 69.57 | ||||
| 364 days | 18.53 | 120.00 | 211.05 | 136.52 | ||||
| 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 – 31 July 2017 | ||||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | ||||
| 198 day | 17.95 | 10.00 | 8.84 | 8.84 | ||||
| 345 day | 18.55 | 70.00 | 51.96 | 51.96 | ||||
Sources: FMDQ, CBN, Bloomberg, Rexel BDC, Zedcrest research
