“News Update:
Annual inflation in Nigeria eased for a fifth straight month in June, slowing to 16.1 percent form 16.25 percent in the month of May, the NBS said in its inflation report released today. A separate food price index however showed inflation at 19.91 per- cent, up from 19.27 percent in May, indicating continued pressure on food prices.”
“The bond market traded on a quiet note in today’s session as mar- ket players remained unmoved by the lower MoM inflation figure (16.1%) which was not far from market expectation. Consequently, yields stayed flat across maturities. We expect slight improve- ments in market activity tomorrow as market players look to rein- vest proceeds from the c.N93.49Billion bond coupon payments credited today/tomorrow.
The T-Bills market also traded on a relatively flat note with mini- mal activities recorded as the CBN continued with its OMO issu- ance in today’s session. Consequently, yields rose marginally by 5bps across the curve. We expect the market to continue with its current trend as the CBN maintains a tight monetary stance.
The OBB and O/N rates slid lower in today’s session to close at 6.17% and 6.92%. This was due to improvement in market liquidity which is estimated at N62billion as at close of business today. We expect rates to trend southward tomorrow on the backdrop of N65billion cash inflow from bond coupon payments.”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.10% |
| Exchange Rate ($) | N305.90 |
| MPR | 14.00% |
| Foreign Reserves | $30.36Bn |
| Brent Crude | $48.84 |
| FGN Bonds | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 16.00 29-Jun-19 | 16.60 | 16.53 | (0.01) | |||
| 15.54 13-Feb-20 | 16.42 | 16.35 | 0.00 | |||
| 14.50 15-Jul-21 | 16.30 | 16.23 | (0.01) | |||
| 16.39 27-Jan-22 | 16.16 | 16.09 | (0.01) | |||
| 14.20 14-Mar-24 | 16.06 | 15.99 | 0.00 | |||
| 12.50 22-Jan-26 | 16.29 | 16.22 | (0.03) | |||
| 16.29 17-Mar-27 | 16.26 | 16.19 | (0.01) | |||
| 12.15 18-Jul-34 | 16.09 | 16.02 | 0.00 | |||
| 12.40 18-Mar-36 | 16.07 | 16.00 | 0.00 | |||
| 16.25 18-Apr-37 | 16.24 | 16.17 | 0.00 | |||
| Treasury Bills | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 3-Aug-17 | 17.75 | 17.50 | 0.50 | |||
| 14-Sep-17 | 17.00 | 16.75 | (0.25) | |||
| 19-Oct-17 | 15.00 | 14.75 | 0.75 | |||
| 2-Nov-17 | 18.80 | 18.55 | (0.15) | |||
| 7-Dec-17 | 18.75 | 18.50 | 0.00 | |||
| 4-Jan-18 | 18.75 | 18.50 | (0.15) | |||
| 1-Feb-18 | 18.70 | 18.45 | 0.00 | |||
| 1-Mar-18 | 18.70 | 18.45 | 0.00 | |||
| 5-Apr-18 | 18.70 | 18.45 | 0.00 | |||
| 3-May-18 | 18.70 | 18.45 | 0.00 | |||
| 14-Jun-18 | 18.70 | 18.45 | 0.00 | |||
| 5-Jul-18 | 18.60 | 18.35 | (0.10) | |||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 5.91 | (0.07) |
| FGN | 7.875 16-Feb-32 | 6.96 | (0.05) |
| First Bank | 6.488 23-Jul-21 | 10.82 | 0.02 |
| Eco bank | 8.75 14-Aug-21 | 11.92 | 0.01 |
| Access Bank | 10.50 19-Oct-21 | 8.50 | 0.00 |
| Zenith Bank | 7.375 30-May-22 | 7.95 | (0.01) |
| UBA | 7.75 8-Jun-22 | 8.82 | 0.00 |
| Money Market Rates | ||||||||
| Current (%) | Previous (%) | |||||||
| Open Buy Back (OBB) | 6.17 | 9.00 | ||||||
| Overnight (O/N) | 6.92 | 9.75 | ||||||
| FX Market | ||||||||
| Current (N/$) | Previous ( N/$) | |||||||
| Interbank | 305.90 | 305.90 | ||||||
| CBN SMIS | 320.00 | 320.00 | ||||||
| I&E FX Window | 362.21 | 362.83 | ||||||
| Parallel Market | 365.00 | 364.50 | ||||||
| Primary Market Auction Results | ||||||||
| NTB – 19 July 2017 | ||||||||
| Tenor | Offer (N’bn) | Expected Rate (%) | ||||||
| 91 days | 36.79 | 13.40 – 13.50 | ||||||
| 182 days | 39.18 | 17.40 – 17.60 | ||||||
| 364 days | 129.00 | 18.50 – 18.65 | ||||||
| FGN Bonds – 12 July 2017 | ||||||||
| Tenor | Rate (%) | Offer (N’bn) | Sub (N’bn) | Sale (N’bn) | ||||
| Jun-21 | 16.2400 | 35.00 | 9.10 | 3.90 | ||||
| Mar-27 | 16.2500 | 50.00 | 55.31 | 47.01 | ||||
| Apr-37 | 16.2514 | 50.00 | 64.75 | 55.05 | ||||
| OMO – 17 July 2017 | ||||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | ||||
| 185 day | 17.95 | 5.00 | 6.29 | 6.29 | ||||
| 346 day | 18.55 | 50.00 | 14.50 | 14.50 | ||||
Sources: FMDQ, CBN, Bloomberg, Zedcrest research
