Local Demand Returns Into The Bond Market As Yields Continue To Compress

Must Read

Lagos Ready To Deliver 4th Mainland Bridge – Sanwo-Olu (Photos)

A major step towards the realisation of the 4th Mainland Bridge was today, taken by the State Government with...

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...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

The FGN bond market kicked off a new week on a very drab note but picking slightly towards the end of the session. Much of today’s activities focused on the auction bonds and some benchmark bonds; 2034s and 2049s papers in particular.

Few trades settled around 9.85% for the 2034s while the 2049s saw high and lows of 9.95% and 9.88%, trading within this range.

Local Demand Returns Into The Bond Market As Yields Continue To Compress

The 2050s remained largely bided with very few offers available to match for the trade. The earlier hours of the day started with its quote opening wide at 10.10%/9.80% but squeezed slightly towards the end of the trading session as the few transactions sealed settled around 9.90%. By and large, yield compressed by an average of c.14bps across the yields curve.

For tomorrow, we expect activities to continue to pick especially at the tail of the curve as more local investors continue to show interest in long-dated bonds.

- Advertisement -

Local Demand Returns Into The Bond Market As Yields Continue To Compress

At the OMO bills space, trade volumes continue to dwindle with the few trades seen largely client-driven. We noted a bit of interest in the longer-dated bills May, June, and July papers as the May/June bill started off the day around 4.40% levels but dropped by 15bps to close the day at 4.25% on the offer. The July bills were offered better with most of its trading settling around 4.85%.

The NTB space, also traded on a very light note large driven by retail-orders who cherry-picked on few May bills offered better than its pairs

Read Also:  Lafarge Africa Plc Announces Results of Its Rights Issue

For tomorrow, market activities are expected to continue to trade on this sluggish note while interest may remain for longer-dated OMO bills.

- Advertisement -

Local Demand Returns Into The Bond Market As Yields Continue To Compress

Money Markets

Interbank rates continued to drop, plunging by an average c.15% to open the week. System liquidity opened at c.N182.07BN positive, and with no significant funding pressures on the day, interbank rates closed the day in the single-digit corridor for OBB and OVN rates at 5.25% and 6.13% respectively.

With no significant funding pressures, we expect the market to trade around this level in interbank session tomorrow.

Local Demand Returns Into The Bond Market As Yields Continue To Compress

FX Market

- Advertisement -

Transaction volumes remained very weak in the IEFX window, with very low volumes passing through the market albeit the Naira appreciates by N0.50k.

Most banks remained bided for the most part of the trading session between N383.00/$ and N387.00/$ while all other markets segments remained stable compared to Friday’s closing.

Local Demand Returns Into The Bond Market As Yields Continue To Compress

Eurobonds

The NGERIA Sovereigns opened the new week on a weaker note with less aggressive bids shown across the curve following the rebound in oil prices last week.

The 2025s and 2049s papers were the greatest losers across the sovereign curve as locals showed no interest in papers offered better, compared to the market, at the belly and tail of the curve. Consequently, we saw yields expand on an average of c.2bps across the curve.

Read Also:  No Stability, No Democracy Bumpy Road Ahead, Fasten Your Seat Belts – LBS Breakfast Session (Oct'18 Edition)

The NGERIA Corps also had a quiet session albeit large movement in yield for the SEPPLN 22s which compressed by c.45bps compared to Friday’s closing.

Local Demand Returns Into The Bond Market As Yields Continue To Compress

Zedcrest Capital

- Advertisement -
Local Demand Returns Into The Bond Market As Yields Continue To Compress - Brand SpurLocal Demand Returns Into The Bond Market As Yields Continue To Compress - 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

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

Local Demand Returns Into The Bond Market As Yields Continue To Compress - Brand SpurLocal Demand Returns Into The Bond Market As Yields Continue To Compress - Brand Spur

Latest News

Nigerian equity market ends Q3’20 with a gain of N116.73 billion

Transactions on the Nigerian Stock Exchange today (Wednesday) closed on a positive note, to extend the recent gaining streak...

Orange Campus Africa, Orange’s new African e-learning platform

Orange announces the launch of its online training platform "Orange Campus Africa" in partnership with the Virtual University of Senegal (UVS) during GSMA Thrive...

Ìlúbìrin Announces School for Waterside Community’s Young Residents

Ìlúbìrin Announces School for Waterside Community’s Young Residents Today, First Investment Development Company (FIDC) is affirming its commitment to education and child development by announcing...

NSE Lists Additional 146.8Million Shares of Dangote Sugar Refinery

Additional shares of Dangote Sugar Refinery Plc have been listed on the trading platform of the Nigerian Stock Exchange (NSE). This was disclosed on the...

Jaiz Bank Kids can code 2020 edition is here!

Jaiz Bank Plc, the premier non-interest Bank in Nigeria has commenced its online coding camp that will be featured in this year’s edition of...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Local Demand Returns Into The Bond Market As Yields Continue To Compress - Brand SpurLocal Demand Returns Into The Bond Market As Yields Continue To Compress - Brand Spur