WP_DEBUG Fixed Income Market: Day in review and outlook - Brand Spur

Fixed Income Market: Day in review and outlook

Must Read

Audi electrifies FC Bayern Munich (Photos)

Enabled by the partnership with Audi: FC Bayern Munich is the first international football club to drive using electric...

#BBNaija: Betway Launches New Predict and Win Promo

Betway, premium gaming and online entertainment brand, and the headline sponsor of Big Brother Naija has launched a new...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...
- Advertisement -

Yesterday, interbank funding rates, OBB & OVN, increased to 6.33% and 7.08% respectively (previously 5.83% and 6.92%) as Sukuk debit of N162.6bn dragged the overall liquidity levels at the interbank market. Accordingly, activity at the Nigerian Treasury Bills Market was lethargic as average yield remained flat at 3.39%. However, we observed some buying interest at the OMO and Bond market as yields declined by an average of 4bps and 8bps to 4.89% and 9.90% respectively.

Today, the Debt Management Office (DMO) is planning to raise a total of N164.6bn at the primary bond (N150.0bn) and treasury bills (N14.6bn) markets. Notably, we expect demand at both auctions to remain strong, as institutional funds would be looking to reinvest expected proceeds of Thursday’s Treasury bills (N14.6bn) and OMO (N352.83bn) maturities. Accordingly, we expect marginal rates at the respective auctions to remain low, falling from their prior auction levels.

Fixed Income Market: Day in review and outlook - Brand Spur

Looking ahead, we note that the DMO has raised c. 40.0% or N876.0bn of its net domestic
borrowing target for 2020 (N2.2tn), leaving N1.3tn left for its issuance programme in 2020.
This makes a strong case for an upward repricing in Bond yields later in the year when net-inflows from OMO maturities to local investors (ex. banks) starts to thin out.

Read Also:  DMO Lists FGN Dual Tranche USD 2.5Bn and Tripple Tranch USD 2.86Bn EuroBonds on the NSE
- Advertisement -

United Capital Research

- Advertisement -
Fixed Income Market: Day in review and outlook - Brand SpurFixed Income Market: Day in review and outlook - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Read Also:  GTBank Presents The 2019 Food and Drink Festival

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Fixed Income Market: Day in review and outlook - Brand SpurFixed Income Market: Day in review and outlook - Brand Spur

Latest News

Lagos Commissioner Commends Traffic Radio for Projecting Government Policies

The Honourable Commissioner for Information and Strategy, Mr. Gbenga Omotoso has commended Lagos Traffic Radio for its drive and...

Stock Recommendations for the Week (21/09/2020 – 25/09/2020)

Last week, investors wealth on the local bourse appreciated by ₦10.4 billion following bargain hunting on medium and large-cap Industrial goods and Consumer goods...

Agusto & Co. assigns a fund credit quality rating of “A+(f)” and fund volatility rating of “FV5′ to Coronation Fixed Income Fund. 

Agusto & Co assigns A+(f) credit quality and FV5 volatility ratings to the Coronation Fixed Income Fund (“CFIF” or “the Fund”). The rating reflects...

Olam Cocoa hits 100% traceability target across its direct global supply chain

Olam Cocoa, a leading supplier of cocoa beans and ingredients, today announces it has achieved 100% traceability of directly sourced cocoa across its global...

Founder and CEO of 54gene Selected as Endeavor Entrepreneur

 Endeavor has welcomed a new entrepreneur into its global network; Dr Abasi Ene-Obong of 54gene was selected as an Endeavor Entrepreneur on September 17, 2020. 54gene is a...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Fixed Income Market: Day in review and outlook - Brand SpurFixed Income Market: Day in review and outlook - Brand Spur