News Update:
As part of efforts to further strengthen the value of the Naira on the parallel market segment of the foreign exchange (forex) market, the Central Bank of Nigeria (CBN) has directed that payments for port charges to the Nigerian Ports Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA) by oil marketing companies should henceforth be accommodated in the official Forex window. – ThisDay
ECONOMIC INDICATORS | |
Inflation (YoY) | 16.10% |
Exchange Rate ($) | N305.65 |
MPR | 14.00% |
Foreign Reserves | $31.36Bn |
Brent Crude | $50.65 |
“The FGN Bond market witnessed further bullish retracements today with significant yield declines witnessed across the curve especially on the 19s (-16bps) and 27s(-15bps), due to renewed demand for bonds at current yield levels. Average bond yield declined by -9bps, a 5bps improvement from the -4bps recorded yesterday. We expect the market to maintain a slightly bullish posture tomorrow as investors anticipate further compres- sion of the yield curve ahead of the bond auction scheduled for August 23.
The T-bills market also traded on a bullish note as demand flowed into the market in anticipation of inflows from OMO maturities (c.N168bn) and Retail FX refunds by the CBN. Average T-bills yield consequently declined by –28bps(est.). The OBB and OVN rates eased lower to close at 20.83% and 22.42%, as there was no significant change in market liquidity from previous day’s level. We expect rates to trend downward tomorrow due to the anticipated inflows into the market.
Results from today’s PMA showed that the CBN sold a total of N32billion (91day) and N30billion (182 day) NTBs, with rates clearing at 13.35% and 17.35% respectively. The next PMA would be held on the 30th of August, with about N193billion maturing NTBs to be rolled over.”
FGN Bonds | ||||||
Description | Bid (%) | Offer (%) | Day Change (%) | |||
16.00 29-Jun-19 | 16.87 | 16.80 | (0.16) | |||
15.54 13-Feb-20 | 16.60 | 16.53 | (0.10) | |||
14.50 15-Jul-21 | 16.48 | 16.41 | (0.12) | |||
16.39 27-Jan-22 | 16.43 | 16.36 | (0.03) | |||
14.20 14-Mar-24 | 16.35 | 16.28 | (0.07) | |||
12.50 22-Jan-26 | 16.47 | 16.40 | (0.07) | |||
16.29 17-Mar-27 | 16.48 | 16.41 | (0.15) | |||
12.15 18-Jul-34 | 16.46 | 16.39 | (0.02) | |||
12.40 18-Mar-36 | 16.50 | 16.43 | (0.07) | |||
16.25 18-Apr-37 | 16.56 | 16.49 | (0.08) | |||
Treasury Bills | ||||||
Description | Bid (%) | Offer (%) | Day Change (%) | |||
2-Nov-17 | 20.00 | 19.75 | 0.00 | |||
7-Dec-17 | 19.40 | 19.15 | 0.00 | |||
4-Jan-18 | 19.45 | 19.20 | 0.15 | |||
1-Feb-18 | 18.85 | 18.60 | (0.40) | |||
1-Mar-18 | 19.00 | 18.75 | (0.10) | |||
5-Apr-18 | 18.90 | 18.65 | (0.25) | |||
3-May-18 | 18.70 | 18.45 | (0.05) | |||
14-Jun-18 | 18.50 | 18.25 | 0.00 | |||
5-Jul-18 | 18.65 | 18.40 | 0.00 | |||
2-Aug-18 | 18.35 | 18.10 | (0.05) |
Money Market Rates | ||||||||
Current (%) | Previous (%) | |||||||
Open Buy Back (OBB) | 20.83 | 27.33 | ||||||
Overnight (O/N) | 22.42 | 29.25 | ||||||
FX Market | ||||||||
Current (N/$) | Previous ( N/$) | |||||||
CBN Spot | 305.65 | 305.65 | ||||||
CBN SMIS | 320.00 | 320.00 | ||||||
I&E FX Window | 359.69 | 362.38 | ||||||
Parallel Market | 366.50 | 366.00 | ||||||
Primary Market Auction Results | ||||||||
NTB – 17 August 2017 | ||||||||
Tenor | Rate (%) | Offer (N’bn) | Sub (N’bn) | Sale (N’bn) | ||||
91 days | 13.35 | 32.44 | 33.04 | 32.44 | ||||
182 days | 17.35 | 30.00 | 34.75 | 30.00 | ||||
364 days | – | – | – | – | ||||
FGN Bonds – 23 August 2017 | ||||||||
Tenor | Offer (N’bn) | Expected Stop Rate (%) | ||||||
Jun-21 | 35.00 | TBA | ||||||
Mar-27 | 50.00 | TBA | ||||||
Apr-37 | 50.00 | TBA | ||||||
OMO – 15 August 2017 | ||||||||
Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | ||||
191 day | 17.95 | 5.00 | 0.08 | 0.08 | ||||
359 day | 18.55 | 20.00 | 25.29 | 25.29 |
Eurobonds | |||
Issuer | Description | Yield (%) | Day Change (%) |
FGN | 6.38 12-Jul-23 | 5.58 | 0.00 |
FGN | 7.875 16-Feb-32 | 6.84 | 0.00 |
First Bank | 6.488 23-Jul-21 | 10.55 | 0.00 |
Eco bank | 8.75 14-Aug-21 | 11.51 | 0.00 |
Access Bank | 10.50 19-Oct-21 | 8.26 | (0.03) |
Zenith Bank | 7.375 30-May-22 | 7.48 | (0.01) |
UBA | 7.75 8-Jun-22 | 8.20 | 0.00 |
Sources: FMDQ, CBN, Bloomberg, Rexel BDC, Zedcrest research