DAILY MARKET REPORT: FIXED INCOME, MONEY MARKET AND FX – August 2 2017

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“News Update:
The Central Bank of Nigeria (CBN) yesterday said Nigeria’s manufacturing sector has rec- orded expansion in production activities for four consecutive times in its Purchasing Man- agers’ Index (PMI). The implication of this positive outcome which also confirms last quar- ter’s GDP growth recovery as well as last month’s inflation moderation are signs that the Nigerian economy may soon exit recession and return to the path of growth. – Guardian”

“There were no active trades in the fixed income market today ow- ing to the suspension of trading in the two-way quote market by the FMDQ. Activities in the market are expected to resume fully tomorrow, with bullish sentiments expected to prevail due to ex- pected cash inflows from OMO maturities and spill over demand from the T-bills PMA.

The OBB and O/N rates rose sharply from 5% levels yesterday to close today at 19.67% and 20.17% due to an estimated sale of N250billion special T-bills of 183 days tenor to banks at 17.20%, debited late yesterday from the system. Market liquidity is esti- mated at N75billion long at close of business today.

We expect rates to trend back lower as inflows from N85.42billion OMO ma- turities are expected to improve market liquidity, not discounting the possibility of another round of OMO auction by the CBN.”

ECONOMIC INDICATORS
Inflation (YoY) 16.10%
Exchange Rate ($) N305.60
MPR 14.00%
Foreign Reserves $30.77Bn
Brent Crude $51.50

 

FGN Bonds
Description Bid (%) Offer (%) Day Change (%)
16.00 29-Jun-19 16.76 16.69 0.00
15.54 13-Feb-20 16.50 16.43 0.00
14.50 15-Jul-21 16.38 16.31 0.00
16.39 27-Jan-22 16.22 16.15 0.00
14.20 14-Mar-24 16.30 16.23 0.00
12.50 22-Jan-26 16.28 16.21 0.00
16.29 17-Mar-27 16.30 16.23 0.00
12.15 18-Jul-34 16.18 16.11 0.00
12.40 18-Mar-36 16.22 16.15 0.00
16.25 18-Apr-37 16.32 16.25 0.00
Treasury Bills
Description Bid (%) Offer (%) Day Change (%)
2-Nov-17 18.35 18.10 0.00
7-Dec-17 18.20 17.95 0.00
4-Jan-18 18.55 18.30 0.00
1-Feb-18 18.05 17.80 0.00
1-Mar-18 18.15 17.90 0.00
5-Apr-18 18.50 18.25 0.00
3-May-18 18.50 18.25 0.00
14-Jun-18 18.50 18.25 0.00
5-Jul-18 18.55 18.30 0.00

 

Eurobonds
Issuer Description Yield (%) Day Change (%)
FGN 6.38 12-Jul-23 5.49 (0.07)
FGN 7.875 16-Feb-32 6.70 (0.03)
First Bank 6.488 23-Jul-21 10.58 (0.03)
Eco bank 8.75 14-Aug-21 11.78 0.00
Access Bank 10.50 19-Oct-21 8.33 (0.03)
Zenith Bank 7.375 30-May-22 7.77 (0.02)
UBA 7.75 8-Jun-22 8.20 0.00

 

Money Market Rates
  Current (%) Previous (%)
Open Buy Back (OBB) 19.67 5.00
Overnight (O/N) 20.17 5.50
FX Market
Current (N/$) Previous ( N/$)
Interbank 305.60 305.60
CBN SMIS 320.00 320.00
I&E FX Window 368.50 366.59
Parallel Market 363.00 363.00
                             Primary Market Auction  Results                                
NTB  – 2 August 2017
Tenor Rate (%) Offer (N’bn) Sub (N’bn) Sale (N’bn)
91 days 13.42 29.14 26.18 23.06
182 days 17.40 80.00 69.75 69.57
364 days 18.53 120.00 211.05 136.52
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 – 31 July 2017
Tenor Rate (%) Offer (NBn) Sub (N’bn) Sale (N’bn)
198 day 17.95 10.00 8.84 8.84
345 day 18.55 70.00 51.96 51.96

Sources: FMDQ, CBN, Bloomberg, Rexel BDC, Zedcrest research

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