Bond Yields Push Higher As GDP Weakens By 6.10% YoY

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KEY INDICATORS

Bond Yields Push Higher As GDP Weakens By 6.10% YoY

FGN Bonds

The FGN bonds market opened the week to the news of negative growth for Nigeria’s GDP (-6.10% YoY). This compounded an already weak market, still reeling from the previous week’s primary auction. We noted offers across the benchmark curve all session, but with no matching bids as investors continue to sit on the sidelines. Even offers at the long-end at 10.00% levels were not seen as enticing enough to bring client demand. Consequently, yields expanded by c.25bps on the average across the bond curve.

We remain cautious to label the current market weakness as bearish as we expect demand from local investors to improve in the coming weeks as their liquidity positions improve from OMO maturities and FGN Bond coupon payments start rolling in.

Benchmark FGN Bonds

Bond Yields Push Higher As GDP Weakens By 6.10% YoY

Treasury Bills

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On the flip side, ample system liquidity pushed activities in the OMO bills in one direction as demand continued to outweigh supply. Bid/Offer spreads remained wide, around 50bps apart on the average across the benchmark curve. We noted bids for the short-dated papers (Nov.—Dec.) at 3.30% levels with offers at 3.00% while at the long end (Jun.—Aug. maturities) bids at 3.90% levels remained unmatched as offers were stable in the mid-3% range.

We expect activity to improve in tomorrow’s session as the bids should improve downwards to match the offer levels.

Bond Yields Push Higher As GDP Weakens By 6.10% YoY

Money Markets

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The Money Markets resumed right where it left last week, as rates remained stable amidst ample system liquidity boosted by FGN Bon coupon payments of c.N49.89Bn. Consequently, OBB and OVN rates closed at 2.00% and 3.00% respectively.

Read Also:  The Nigerian Insurance Sector, Repositioning for Efficiency

With more liquidity expected later in the week via OMO maturities, we expect rates to remain stable in the low single-digit range.

FX Market

The FX market has slumped back into its lull, with not much activity recorded in today’s session. The I&E FX Market volumes closed at $7.19mio, an 88% decrease from last week’s close, while the rates close unchanged at N386.00/$. At the parallel market, the Cash market rate appreciated by N1.00k to close at N475.00/$ while the Transfer rate closed unchanged at N480.00/$.

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Eurobonds

The NGERIA Sovereigns opened the week on a stronger note, amidst general positivity seen in the sub-Sharan sovereign space. Consolidated increase in global oil prices boosted the sovereign papers, as demand hit the streets mostly from offshore players. Yields contracted by c.4bps on the average across the curve by the close of trading. In the SSA space, ANGOLA and EGYPT sovereign papers led the rally, as prices gained +25cents each while the ZAMBIA papers were the day’s losers following the sack of a market-friendly central bank governor by President Lungu.

The NGERIA Corps tickers had a more quiet session, with offers for ACCESS 2021s, FIDBAN 2022s, and SEPLLN 2023s in the streets all day seeing a lack of interests. The ETINL 2024s paper continues to remain scarce with the market all out of supply for that paper.

Bond Yields Push Higher As GDP Weakens By 6.10% YoY

 

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Bond Yields Push Higher As GDP Weakens By 6.10% YoY - Brand SpurBond Yields Push Higher As GDP Weakens By 6.10% YoY - Brand Spur

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Bond Yields Push Higher As GDP Weakens By 6.10% YoY - Brand SpurBond Yields Push Higher As GDP Weakens By 6.10% YoY - Brand Spur

Latest News

Four 12 Year Old Students To Tackle Hong Kong’s Longest Trail to Raise Funds for The Child Development Centre (CDC) for Children with Special...

HONG KONG SAR - Media OutReach - 9 March 2021 - From 27 to 29 March 2021, four secondary school students will challenge themselves to complete the longest trail in Hong Kong - the 100km MacLehose trail. Their aim is to raise essential funds for The Child Development Centre (CDC), a non-profit organisation that supports children with special educational needs. Please support and donate to this cause at https://www.simplygiving.com/100km-hike-for-special-needs

Bond Yields Push Higher As GDP Weakens By 6.10% YoY - Brand Spur Bond Yields Push Higher As GDP Weakens By 6.10% YoY - Brand Spur


Jack, Jaden, Gabriel, and Martin are year-12 students at an international school in Hong Kong. The hike they will complete is not only daunting in length, but also challenging due to the elevation of 5,053 metres. The students chose the CDC as the sole beneficiary as Jack's younger sister previously attended an early intervention programme there. "This organisation (the CDC) is very close to Jack's heart, as he has a younger sister with Down's Syndrome, and understands the difficulties that families face when raising and educating special needs children to reach their full potential, which is something that every child deserves.

"Money donated to the CDC will go towards programme and service expenses, allowing them to aid even more families, and provide even better care with their top notch teaching specialists and therapists. Furthermore, it is no doubt that under the current COVID-19 pandemic, non-profit organisations like this will be impacted the most, so any money donated will be especially helpful now more than ever. We would really appreciate your support on our journey and cause!"

Dr. Yvonne Becher, the Chief Executive of the CDC, expressed her gratitude to the students for organising this meaningful event, "we are grateful for Jack's and his team's initiative, and are glad that the CDC's work is being recognised and has created such positive value to families throughout the years. Hope everyone can also feel the love and faith that Jack has for his sister, and spread the positive energy to many other children with additional needs in our society."

Bond Yields Push Higher As GDP Weakens By 6.10% YoY - Brand Spur Bond Yields Push Higher As GDP Weakens By 6.10% YoY - Brand Spur


Based on each child's needs, the CDC's multidisciplinary team offers services such as assessments, early intervention programmes, speech therapy, occupational therapy, and targeted support programmes addressing social skills, sensory processing, attention, behaviour, early literacy and numeracy, and more. The CDC is also committed to supporting parents and professionals through counselling services, outreach screening, and child development training.


This press release is distributed by The Child Development Centre and supported by Media OutReach Newswire

About The Child Development Centre:

Igniting Learning Journeys - One Child at a Time

The Child Development Centre (CDC) is a non-profit education, assessment and therapy provider for children of early childhood age (0 - 8) with a wide spectrum of additional learning or developmental needs. We envision that every child will succeed in their unique learning journey and are missioned to provide quality learning experiences for the individual child and empower their families. The CDC is one of only two government-supported Early Education and Training Centres (EETCs) in Hong Kong which provide programmes and services in both English and Chinese, serving more than 400 children per year.

Address: 4/F, Prime Mansion, 183-187 Johnston Road, Wan Chai, Hong Kong

T 3462 2875 | F 2849 6900 | www.cdchk.org

Bond Yields Push Higher As GDP Weakens By 6.10% YoY - Brand Spur
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