DAILY MARKET REPORT: Fixed Income, Money Market and FX – June 13 2017

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The bond market continued to trade on a weak note with slight sell off across the entire yield curve. We saw slight retracement before market close, however, this was not enough to reverse market mood. We expect the market to remain slightly bearish as counter parties trade in the news  of N140billion FGN bond on offer by the DMO for this month’s auction.

The T-bills market  calmed from the bearish run yesterday in anticipation  of the N206 Billion OMO T-bills maturity expected this Thursday. Yields on the short and medium end of the curve compressed by 40bps with the 13- Jul-17 (30days TTM) declining the most by 200bps . The long end traded flat as the CBN continued with OMO ; selling N320Million and N1.80Billion of the 184days and 352days maturities respectively with rates pegged at 18.00% -18.60%.

The OBB  and  O/N  rates  declined  today  to  close  at  24.17%  and  26.92% coming from 120% levels yesterday despite the tight liquidity. The absence   of   Wholesale   and   Retail   FX    interventions    today    al- lowed commercial banks to access the CBN’s SLF window to fund their obligations at cheaper rates.  We expect interest rate to decline before   the close of week due to OMO T-bills maturities.

Displaying brand spur bond market.jpg
Displaying brand spur bond.jpg

 

 

 

 

 

Sources: FMDQ, CBN, Bloomberg, Zedcrest research

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