“News Update:
In continuation of its drive to ensure liquidity and stability in the foreign exchange market, the Central Bank of Nigeria (CBN) on Monday injected the total sum of $195 million into various segments of the inter-bank foreign exchange market. The Acting Director, Corporate Communi- cations at the CBN, Isaac Okorafor, who confirmed the figures, said the bank’s continued inter- vention was aimed at strengthening the international value of the Naira. – Thisday”
“The Bond market traded on a flat note today with only few trades executed across maturities. We expect the market to remain client driven in the near term as we await release of the FGN bond issuance calendar for Q3 2017.
The T-bills market traded scantily with some buying seen on the short end and sell off on the medium end of the curve. The long end remained flat as the CBN conducted another OMO session. Consequently, yields compressed by an average of 3bps across the curve. We expect the market to be calm tomorrow as market players position themselves for the T-bills PMA.
The OBB and O/N rates rose significantly higher today to close at 44.17% and 50.92% respectively due to the OMO T-bills sales of N27.8billion and Retail SMIS auction by the CBN which continued to put pressure on naira liquidity. System liquidity is estimated at N72billion negative as at COB to- day. We expect the rates to remain at these levels, however, the maturity of OMO T-bills before the end of the week is expected to calm interest rates.”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.25% |
| Exchange Rate ($) | N305.95 |
| MPR | 14.00% |
| Foreign Reserves | $30.27Bn |
| Brent Crude | $49.29 |
| FGN Bonds | |||||
| Description | Bid (%) | Offer (%) | Day Change (%) | ||
| 16.00 29-Jun-19 | 16.51 | 16.44 | (0.01) | ||
| 15.54 13-Feb-20 | 16.44 | 16.37 | (0.01) | ||
| 14.50 15-Jul-21 | 16.29 | 16.22 | (0.01) | ||
| 16.39 27-Jan-22 | 16.14 | 16.07 | (0.01) | ||
| 14.20 14-Mar-24 | 15.90 | 15.83 | (0.02) | ||
| 12.50 22-Jan-26 | 16.12 | 16.05 | 0.03 | ||
| 16.29 17-Mar-27 | 16.18 | 16.11 | 0.00 | ||
| 12.15 18-Jul-34 | 15.97 | 15.90 | (0.01) | ||
| 12.40 18-Mar-36 | 15.99 | 15.92 | 0.00 | ||
| FGN Treasury Bills | |||||
| Description | Bid (%) | Offer (%) | Day Change (%) | ||
| 5-Oct-17 | 18.25 | 18.00 | (0.20) | ||
| 2-Nov-17 | 18.90 | 18.25 | 0.20 | ||
| 7-Dec-17 | 18.10 | 17.90 | 0.05 | ||
| 4-Jan-18 | 18.90 | 18.30 | 0.10 | ||
| 1-Feb-18 | 18.70 | 18.30 | 0.15 | ||
| 1-Mar-18 | 18.60 | 18.15 | 0.20 | ||
| 5-Apr-18 | 18.45 | 18.35 | 0.00 | ||
| 3-May-18 | 18.45 | 18.25 | (0.10) | ||
| 14-Jun-18 | 18.45 | 18.35 | 0.05 | ||
| Money Market Rates | ||||||||
| Current (%) | Previous (%) | |||||||
| Open Buy Back (OBB) | 44.17 | 14.83 | ||||||
| Overnight (O/N) | 50.92 | 15.67 | ||||||
| FX Market | ||||||||
| Current (N/$) | Previous ( N/$) | |||||||
| Interbank | 305.95 | 305.95 | ||||||
| CBN SMIS | 320.00 | 320.00 | ||||||
| I&E FX Window | 363.33 | 359.00 | ||||||
| Parallel Market | 364.00 | 364.00 | ||||||
| Primary Market Auction Results | ||||||||
| NTB – 05 July 2017 | ||||||||
| Tenor | Offer (N’bn) | Expected Rates (%) | ||||||
| 91 days | 35.00 | 13.45 – 13.55 | ||||||
| 182 days | 22.00 | 17.25 – 17.50 | ||||||
| 364 days | 120.00 | 18.50 – 18.65 | ||||||
| FGN Bonds – 21 June 2017 | ||||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | ||||
| Jun-21 | 16.1900 | 40.00 | 12.52 | 4.22 | ||||
| Mar-27 | 16.1900 | 50.00 | 57.35 | 30.25 | ||||
| Apr-37 | 16.1965 | 50.00 | 88.24 | 64.79 | ||||
| OMO – 20 June 2017 | ||||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | ||||
| 156 day | 17.90 | 5.00 | 0.11 | 0.11 | ||||
| 338 day | 18.55 | 30.00 | 27.75 | 27.75 | ||||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 5.80 | 0.01 |
| FGN | 7.875 16-Feb-32 | 6.95 | 0.00 |
| First Bank | 6.488 23-Jul-21 | 11.14 | 0.06 |
| Ecobank | 8.75 14-Aug-21 | 11.93 | 0.01 |
| Access Bank | 10.50 19-Oct-21 | 8.46 | 0.02 |
| Zenith Bank | 7.375 30-May-22 | 7.77 | 0.00 |
| UBA | 7.75 8-Jun-22 | 8.68 | 0.01 |
Sources: FMDQ, CBN, Bloomberg, Zedcrest research
