“News Update:
In continuation of its foreign exchange supply drive, the Central Bank of Nigeria (CBN) on Mon- day intervened in the interbank segment of the market to the tune of $195million. Figures re- leased by the bank show that it offered the total sum of $100million to the wholesale segment, while the small and medium enterprises (SMEs) segment received the sum of $50 million. The invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others, received $45 million.”
“The bond market was bearish today as offshore investors sold off some of their holdings on the 2019, 2020 and 2024 bond maturi- ties. Consequently, yields rose by an average of 3bps across the curve. We expect the market to remain client driven in the near term with a slight bearish bias.
We witnessed a slightly bullish T-bills market today as investors cherry picked specific maturities with attractive yields (August to December 2017 T-bills maturities). Trading volumes still remained weak as the CBN continued with its OMO issuance with total sale of N10.75billion at 17.94% (185day) and N31.28billion at 18.55% (346day).
We expect the market to be relatively quiet as attention shifts to the PMA scheduled for tomorrow.
The OBB and O/N rates slid lower to close at 5.00% and 5.67% as market liquidity was bolstered by cash inflows from bond coupon payments of c.N65.36billion. We expect rates to remain stable tomorrow in the absence of any liquidity tightening activities by the CBN”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.10% |
| Exchange Rate ($) | N315.00 |
| MPR | 14.00% |
| Foreign Reserves | $30.36Bn |
| Brent Crude | $49.01 |
| FGN Bonds | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 16.00 29-Jun-19 | 16.60 | 16.63 | 0.10 | |||
| 15.54 13-Feb-20 | 16.42 | 16.41 | 0.06 | |||
| 14.50 15-Jul-21 | 16.30 | 16.25 | 0.02 | |||
| 16.39 27-Jan-22 | 16.16 | 16.12 | 0.03 | |||
| 14.20 14-Mar-24 | 16.06 | 16.04 | 0.05 | |||
| 12.50 22-Jan-26 | 16.29 | 16.19 | (0.03) | |||
| 16.29 17-Mar-27 | 16.26 | 16.19 | 0.00 | |||
| 12.15 18-Jul-34 | 16.09 | 16.06 | 0.04 | |||
| 12.40 18-Mar-36 | 16.07 | 16.03 | 0.03 | |||
| 16.25 18-Apr-37 | 16.24 | 16.19 | 0.02 | |||
| Treasury Bills | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 3-Aug-17 | 17.65 | 17.40 | (0.10) | |||
| 14-Sep-17 | 17.45 | 17.20 | 0.45 | |||
| 19-Oct-17 | 14.25 | 14.00 | (0.75) | |||
| 2-Nov-17 | 18.80 | 18.55 | 0.00 | |||
| 7-Dec-17 | 18.75 | 18.50 | 0.00 | |||
| 4-Jan-18 | 18.75 | 18.50 | 0.00 | |||
| 1-Feb-18 | 18.20 | 17.95 | (0.50) | |||
| 1-Mar-18 | 18.70 | 18.45 | 0.00 | |||
| 5-Apr-18 | 18.70 | 18.45 | 0.00 | |||
| 3-May-18 | 18.65 | 18.40 | (0.05) | |||
| 14-Jun-18 | 18.70 | 18.45 | 0.00 | |||
| 5-Jul-18 | 18.60 | 18.35 | 0.00 | |||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 5.91 | 0.00 |
| FGN | 7.875 16-Feb-32 | 6.94 | (0.02) |
| First Bank | 6.488 23-Jul-21 | 10.83 | 0.01 |
| Eco bank | 8.75 14-Aug-21 | 11.91 | (0.01) |
| Access Bank | 10.50 19-Oct-21 | 8.51 | 0.01 |
| Zenith Bank | 7.375 30-May-22 | 7.94 | (0.01) |
| UBA | 7.75 8-Jun-22 | 8.81 | (0.01) |
| Money Market Rates | ||||||||
| Current (%) | Previous (%) | |||||||
| Open Buy Back (OBB) | 5.00 | 6.17 | ||||||
| Overnight (O/N) | 5.67 | 6.92 | ||||||
| FX Market | ||||||||
| Current (N/$) | Previous ( N/$) | |||||||
| Interbank | 315.00 | 305.90 | ||||||
| CBN SMIS | 320.00 | 320.00 | ||||||
| I&E FX Window | 363.57 | 362.21 | ||||||
| Parallel Market | 365.00 | |||||||
| 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 – 18 July 2017 | ||||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | ||||
| 198 day | 17.94 | 10.00 | 10.75 | 10.00 | ||||
| 345 day | 18.55 | 50.00 | 31.28 | 31.28 | ||||
Sources: FMDQ, CBN, Bloomberg, Zedcrest research
