A Flurry of Sellers in The Fixed Income Spaces as Local Investors Wrap Up for Year-End…

Must Read

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 United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of First Bank of Nigeria Sort Codes in Nigeria

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

It was a tale of two at the FGN bond space today, as the bond spaced opened the week generally bearish with the market oozing with sellers at the early hours trading session. Still, this bearishness eventually turned at the curve’s tail.

We witnessed the market trades’ chunk at the curve’s belly and a few 2026s-2029s papers. Most of the trades for the mid-dated bond printed at an average of 8.50%, while for the 2026s/2027s at around the mid 6.00% and the 2028s/2029s traded within the range of 7.50%-8.00%.

We also noted some sellers at the early hours for the long-dated bonds, which started off selling around 9.00% levels but dropped by approximately 50bps as demand from opportunistic investors was witnessed on this bond.

Despite all this, the bid/offer spread opened wide and widened further during the day, consequently causing the benchmark yields to expand by an average of 52bps across the sovereign curve compared to Friday’s closing.

We expect the market activities to persist for the week with a bit of profit-taking from local investors who are seeking to close their book positive for year-end.

Treasury Bills

- Advertisement -

Activities in the T-bills market continued to drag, with few interests seen as offers improved across many papers. The market printed a few trades on the latest OMO issue, the 21-Dec bill, which was initially offered at 2.50% but increased by 40bps by close of business.

These bills saw most of the market Joy as it was offered better than its pairs with other January papers offered around a 1.80% level. All other papers were relatively inactive for most of the trading session, although rates expanded slightly by c.5bps across the OMO/NTB curve.

Read Also:  OPINION: Building a Sustainable Brand For People, Planet and Profit

Market momentum is expected to remain sluggish despite buoyant liquidity availability to support demand for the bills supplied. 

Money Markets

As expected, Interbank rates remained at the sub-one levels with a slight movement upward while we saw lots of banks remain awash with liquidity. Thus, we saw OBB and OVN rates close the day at 0.50% and 0.88%, respectively.

- Advertisement -

We expect interbank rates to remain at the sub-one percent levels during tomorrow’s session since the market does not envisage any significant outflow to cause otherwise. 

FX Market

The liquidity squeeze persevered in the interbank IEFX market, although we saw more trade volume (c.$90.09M) pass through the market today, with the rate depreciating slightly by 1.50k.

Read Also:  Frontier technologies have huge potential to drive prosperity and protect planet, but only if properly managed - Report

The few trades consummated were mainly client induced, although most banks remained bided between N390 and N395 to the dollar as the Apex bank slowed down in the daily FX sales intervention in that space. Other FX market segments remained unchanged with little or no activity passing through these windows to affect rates significantly. 

Eurobonds

The NIGERIA Sovereign tickers slide slightly as demanded persisted in today’s session. We noted better bids across the sovereign curve, most especially in the mid and long-dated maturities. Consequently, yields expanded by an average of c.3bps across the sovereign yield curve.

- Advertisement -

Similarly, the NIGERIA Corps tickers traded on a bullish note, except for the ACCESS 2021s and ZENITH 2022s, which expanded by +c.19bps and +c.6bps compared to Fridays’ closing.

- Advertisement -
A Flurry of Sellers in The Fixed Income Spaces as Local Investors Wrap Up for Year-End… - Brand SpurA Flurry of Sellers in The Fixed Income Spaces as Local Investors Wrap Up for Year-End… - 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.

A Flurry of Sellers in The Fixed Income Spaces as Local Investors Wrap Up for Year-End… - Brand SpurA Flurry of Sellers in The Fixed Income Spaces as Local Investors Wrap Up for Year-End… - Brand Spur

Latest News

Establishing Twitter’s Presence in Africa, Why Ghana?

In line with its growth strategy, Twitter has announced that it is now actively building a team in Ghana. Twitter CEO...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -A Flurry of Sellers in The Fixed Income Spaces as Local Investors Wrap Up for Year-End… - Brand SpurA Flurry of Sellers in The Fixed Income Spaces as Local Investors Wrap Up for Year-End… - Brand Spur