Sentiments across the domestic fixed income market was largely bullish under the review period. Notably, both Open Market Operation (OMO) and FGN Treasury Bill (NTB) yields which averaged 5.1% and 2.2% at the end of Q2-2020, converged at 1.9% at the end of Q3-2020. Similarly, the year-long rally at the bond market continued in Q3-2020 as the average yield on FGN Bond dipped from 8.6% as at the end of June 2020 to end Sept-2020 at 6.8%.
This was thanks to net-inflow of funds via OMO maturities since the CBN barred locals from participating at its bills market late Oct-2019. At this point, no sovereign bills or bond of any duration yields more than inflation at 13.22%.
Looking ahead, we expect rates to remain depressed through Q4-2020. This is predicated on the large size OMO bill maturities scheduled to hit the financial system in Q4-2020. Although non-bank local investors will fully rotate out of OMO bills from Oct-2020, we do not expect a sizeable upward repricing of yields in the near term, given that FG’s planned domestic paper supply for the year are already well bought and satisfied.
Further out, we are of the view that rates could adjust slightly upward as liquidity becomes less abundant. This is barring another unorthodox move by the CBN to keep rates down. Also, the renewed apathy for duration witnessed in the latter part of Q3-2020, particularly as secondary market yields are yet to converge at primary yields, suggests investors may already be positioning for the peak of the market.
HEADLINES YOU MIGHT HAVE MISSED FROM BRAND SPUR
Sony Led the Growing Smartphone Image Sensor Market in H1 2020
The global smartphone Image sensor market led by Sony reached a total revenue of $6.3 billion in H1 2020, according to the Strategy Analytics Handset Component Technologies service report, “Smartphone Image Sensor Market Share Q2 2020: Revenue down by 6 per cent as Sony dominates the market.”
Dettol Cool Announces Ighalo As Brand Ambassador
Manchester United forward, Odion Ighalo, has been named as an ambassador of Nigeria’s leading hygiene brand Dettol.
TVC Communications Partner with P&G to Commemorate 2020 Child Health Day
To commemorate the 2020 Child Health Day, Africa’s foremost media company, TVC Communications; owners of TVC, TVC News, Max FM (Lagos & Abuja) & Adaba FM in partnership with Procter & Gamble recently donated Pampers Baby Diapers to post-natal mothers at Nigeria’s biggest Maternity Hospital in Lagos; Ayinke House Maternity Hospital, Ikeja Lagos, Nigeria.
The global pharmaceutical industry has experienced significant growth in the last two decades, with pharma revenues worldwide reaching $1.25trn in 2019. Besides generating huge profits, some of the leading companies responsible for the research, development, production, and distribution of medications also witnessed a substantial market cap growth this year.
COVID-19 disrupting mental health services in most countries, WHO survey
The COVID-19 pandemic has disrupted or halted critical mental health services in 93% of countries worldwide while the demand for mental health is increasing, according to a new WHO survey. The survey of 130 countries provides the first global data showing the devastating impact of COVID-19 on access to mental health services and underscores the urgent need for increased funding.
Sony and Xbox Games Strategies Diverge As Cloud Streaming Shapes Future Platforms
The next battle in the 50-year-old games console wars will be shaped by the increasingly contrasting strategies of the two leading players, Sony PlayStation and Microsoft Xbox, according to the latest research from Strategy Analytics.
Dealing With Malnutrition In A Pandemic
Six months ago, the terms COVID-19, pandemic, social distancing, isolation and quarantine made their way into the popular lexicon. Another word that has also gained prominence during this period is malnutrition.
