Drab Day in Fixed Income Space Despite the Ease in System Liquidity

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KEY INDICATORS

Drab Day in Fixed Income Space Despite the Ease in System Liquidity - Brand Spur

FGN Bonds

The calmness in the FGN bond space persisted for a 2nd consecutive session with very slim volume passing through the benchmark curve. The short end of the curve opened and remained quiet, although there were few bids for the 2021s at 3.50% with no offer to match.

At the tail of the curve, most of the market action kicked off and ended on the 2036s and 2049s. However, more of the trades executed was on the 2049s which settled around 10.91% level losing c.4pts from yesterday’s closing.

The 2036s, on the other hand, remained quoted and unmatched at 10.20%/10.15% for most of the trading session. By and large, yields expanded slightly by c.1bps to end the week.

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We expect trading activities to increase next week but on selected papers offered at the juicier level.

Benchmark FGN Bonds

Drab Day in Fixed Income Space Despite the Ease in System Liquidity - Brand Spur

Treasury Bills

The OMO bills space ended the week on a very frail note as trading activities dwindled across the curve. A larger part of the trading session was dominated with much bears of the offers seen at the short end of the curve. However, by business close, the market witnessed a bullish run for the latest OMO issue (08th June bill) with the majority of its trade settling around 6.60% levels while yields compressed by an average on c.48bps across the curve.

At the NTB space, there were more retail offers with few bids to match especially for the 27th August maturity which was offered at 2%.

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Next week, activities are expected to increase especially at the beginning of the week albeit more bulls as the tightness in the system liquidity ease.

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Drab Day in Fixed Income Space Despite the Ease in System Liquidity - Brand Spur

Money Markets 

System liquidity remained slightly liquid opening the day approximately N136.40bn positive. Consequently, OBB and OVN slide slightly, dropping by 10.86% on the average on both the OBB and OVN rates closing the week at 13.80% and 14.10% respectively.

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Next week, we expect to drop slightly at the beginning of the week but inch up by the end as the market sort to raise funds for the bi-weekly FX retail auction.

Drab Day in Fixed Income Space Despite the Ease in System Liquidity - Brand Spur

FX Market

At the Interbank market, The Naira depreciated by 0.50k at the I&E FX window, as supply squeeze continues to affect the general flow of funds which remained sparely low. We also it saw dip by approximately 2k in the cash and transfer window as the market continue to react the APEX bank converging rate the CBN spot and SMIS space thus closing the week at N463/$ and N466/$ respectively.

Drab Day in Fixed Income Space Despite the Ease in System Liquidity - Brand Spur

Eurobonds

The NGERIA Sovereign tickers weakened to close the week, more bearish than bullish as the market saw a bit of profit-taking across the benchmark curve, mostly on the mid- and long-tenured papers. Yields expanded by an average c.13bps across the sovereign papers. At in the SSA space, most of the traded on a quiet note although we with more offers on the Angola papers but in small sizes

At the NGERIA Corps tickers, the FIDBAN 22s and UBANL 22s were the most active of the tracked papers moving at the opposite sides of the train as yields adjusted on both papers by –c.34bps and +c.40bps respectively.

Drab Day in Fixed Income Space Despite the Ease in System Liquidity - Brand Spur

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Latest News

New entrant AECO Energy launches business innovation to deliver ‘last mile of value chain’ to Singapore’s maturing open electricity market

  • AECO Energy announces the launch of its operations in Singapore to provide innovation to the open electricity market for businesses with generation 2.0 of its technology and service offerings.
  • The company will introduce three solutions as part of its initial portfolio, customisable to specific business needs.


SINGAPORE - Media OutReach - 13 April 2021 - AECO Energy, a new entrant to Singapore's electricity sector, has today announced the launch of its operations. AECO Energy will be the first-of-its kind energy technology and services company aimed at innovating customer-centric offerings in electricity and renewable energy markets.

With over 12 years of experience in delivering open market electricity services and solutions to businesses in Australia under the Power Choice brand, AECO Energy is bringing its second generation of services and technology to Singapore for the first time. AECO's second generation delivers on two major offerings.

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Firstly, AECO delivers the 'last mile' of value in Singapore Open Electricity Market (OEM) value chain by providing innovative services to assist businesses to manage, plan and make better buying decisions.

AECO is all about enabling increased profits for businesses. AECO has a customer-centric mission to use its low-cost proven technology and expert-led services to enable better business decisions within a complex electricity market with multiple providers and opaque medium- to long-term pricing information. This comes against the backdrop of Singapore's maturing OEM, which gives businesses and consumers the autonomy to buy and choose their electricity providers - the freedom to choose.

AECO Energy's technology platform, MarketPro™ with its unique, electricity futures market simulator Rate Watch™, delivers business and electricity efficiency and empowers businesses through relevant and timely pricing information, while also helping Singapore businesses make better buying decisions via automated tenders and reverse auctions. Moreover, for businesses who do not have the capability and capacity to manage and purchase its own electricity, AECO Energy Portfolio™ delivers scalable buying power with a fully-managed contract management and purchasing aggregation service for small, medium and large businesses.

Alan Jones, CEO, Chairman & Founder, AECO Energy, said: "We are incredibly excited and humbled to be joining Singapore's dynamic energy scene with our low-cost, high-value products and services. Our mission is clear: just like Amazon is revolutionising the 'last mile' of product supply chains with its same day delivery, we are also delivering the 'last mile' of the value chain in Singapore's OEM that enables more businesses better purchasing decisions, more business profitability and growing all of Singapore's economy."

Secondly, with SGX-listed entities, enterprises and multinational corporations (MNCs)' increasing emphasis on sustainability, AECO (through its SustainPro™ offering) will bring for the first-time in Singapore the benefit of AECO's direct relationship with generators of International Renewable Certificates (I-REC). This enables Southeast Asian markets the benefit of medium- to long-term low-cost and structured REC solutions to meet renewable energy targets and sustainability goals. This translates to more profits by providing more predictable costs for businesses in meeting their sustainability and renewable energy goals.

"As a specialised company, unburdened with corporate overheads and distractions from Singapore's local market participants, we can offer companies who are based anywhere in Southeast Asia, sustainability and renewable energy solutions that span markets and countries at a lower and more predictable price. We are honoured to play our part to bring sustainability and increased renewable energy throughout the world and to do so while benefiting our customers' cost structures," continued Mr. Jones.

AECO Energy is introducing three offerings as part of its electricity management solutions:

  • MarketPro™: Businesses can optimise costs and seize market opportunities with exclusive access to customised market price information through AECO Energy's integrated online procurement and management platform equipped with Rate Watch™, a market simulation and automated procurement technology from as low as SGD $149 per month.
  • Portfolio™: Businesses get exclusive access to economies of scale with better buying power through professional and expert-managed energy procurement portfolios overseen by AECO Energy experts. This allows enterprises to focus on their core business while AECO Energy experts will fully-manage their electricity contracts and make better buying decisions on their behalf from as low as an additional SGD $74 per month.
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"With the understanding that business needs are unique for every organisation, our energy experts will work closely with customers here in Singapore to help them reduce costs, drive efficiency and make better buying decisions. By providing technology-enabled, insights-driven energy technology solutions, we want to create a profound impact on our customers' businesses to better position them for sustainable growth in the long-term," concluded Alan.


About AECO Energy:

Based in Singapore, the AECO Pacific Group owns and operates the Power Choice and AECO Energy brands. A leading pioneer for more than 12 years in electricity brokerage and consulting services in Asia Pacific focusing on deregulated electricity markets, AECO Pacific helps businesses with electricity procurement and management backed by market intelligence. Transforming and saving businesses more, AECO's combined experience in energy leadership and innovative technology solutions remain unmatched in dynamic and changing energy markets. For more information, visit https://powerchoice.com.au/ and https://aecoenergy.sg/.

Drab Day in Fixed Income Space Despite the Ease in System Liquidity - Brand Spur
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