DAILY MARKET REPORT: FIXED INCOME, MONEY MARKET AND FX – JUNE 14 2017

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A Flurry of Sellers in The Fixed Income Spaces as Local Investors Wrap Up for Year-End…

The bond market witnessed some demand today with special emphasis on the 2027 bonds. Offshore investors are currently testing the waters with little trickles of buy orders on FGN bonds with the current FX market stability. We expect the market to trade cautiously with client orders dominating market sentiment.

The T-bills market traded with mixed sentiments today with an initial sell off on the short and medium end of the curve at the start of market and aggressive buying subsequently. Trading activity was skewed towards the short end of the curve ( 7- 30 TTM) with total trade volumes of c.N150Billion. The medium and long end was relatively flat due to the Treasury PMA that took place today.

We anticipate a bullish market tomorrow on the back of N205 billion OMO T-bills repayment. The OBB and O/N rates further declined today to close at 16.33% and 17.33% due to the slight improvement in market liquidity coming from excess naira refunds from Retail FX sales . Market liquidity is estimated at N65billion deficit as at close of business today . We expect interest rates to decline steeply tomorrow due to OMO T-bills maturities.

ECONOMIC INDICATORS
Inflation (YoY)17.24%
Exchange Rate ($)N305.70
MPR14.00%
Foreign Reserves$30.28Bn
Crude Oil Price$46.90

 

FGN Bonds
DescriptionBid (%)Offer (%)Day Change (%)
16.00 29-Jun-1916.5216.450.00
15.54 13-Feb-2016.4316.360.01
14.50 15-Jul-2116.4716.40.05
16.39 27-Jan-2216.0716.00(0.13)
14.20 14-Mar-2416.0415.970.09
12.50 22-Jan-2616.1116.04(0.07)
12.50 22-Jan-2716.3116.24(0.01)
12.15 18-Jul-3416.0115.94(0.02)
12.40 18-Mar-3616.0315.96(0.03)
FGN Treasury Bills
DescriptionBid (%)Offer (%)Day Change (%)
3-Aug-1719.3819.130.38
14-Sep-1717.1016.85(0.75)
5-Oct-1719.0618.810.06
2-Nov-1718.7118.46(0.19)
4-Jan-1819.1218.870.07
1-Feb-1819.0318.78(0.07)
1-Mar-1818.6918.44(0.11)
5-Apr-1818.6818.430.03
3-May-1818.5618.31(0.04)

 

Money Market Rates
Current (%)Previous (%)
Open Buy Back (OBB)16.3324.17
Overnight (O/N)17.3326.92
FX Market
Current (N/$)Previous ( N/$)
Interbank305.70305.70
CBN SMIS320.00320.00
I&E FX Window367.17372.71
Parallel Market365.00365.00
                             Primary Market Auction  Results         
NTB – 14 June 2017
TenorRate (%)Offer (N’Bn)Sub (N’Bn)Sale (N’Bn)
91 daysTBA39.06TBATBA
182 daysTBA23.02TBATBA
364 daysTBA174.64TBATBA
FGN Bonds – June 2017
TenorRate (%)Offer (N’Bn)Sub (N’Bn)Sale (N’Bn)
21-JunTBD40.00N/AN/A
27-MarTBD50.00N/AN/A
Apr-37TBD50.00N/AN/A
OMO – 13 June 2017
TenorRate (%)Offer (N’Bn)Sub (N’Bn)Sale (N’Bn)
184 day18.005.000.320.32
352 day18.6010.001.801.80

 

Eurobonds
IssuerDescriptionYield (%)Day Change (%)
FGN6.38 12-Jul-235.590.04
FGN7.875 16-Feb-326.870.06
Fidelity Bank6.88 09-May-1812.56(0.17)
GT Bank6.00 08-Nov-184.320.02
Zenith Bank6.25 22-Apr-195.36(0.02)
First Bank8.25 07-Aug-2010.6(0.05)
Access Bank7.677 24-Jun-219.330.01

 

 

 

 

 

(FMDQ, CBN, Bloomberg, Zedcrest)