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 |
MPR | 14.00% |
Foreign Reserves | $30.28Bn |
Crude Oil Price | $46.90 |
FGN Bonds | |||||
Description | Bid (%) | Offer (%) | Day Change (%) | ||
16.00 29-Jun-19 | 16.52 | 16.45 | 0.00 | ||
15.54 13-Feb-20 | 16.43 | 16.36 | 0.01 | ||
14.50 15-Jul-21 | 16.47 | 16.4 | 0.05 | ||
16.39 27-Jan-22 | 16.07 | 16.00 | (0.13) | ||
14.20 14-Mar-24 | 16.04 | 15.97 | 0.09 | ||
12.50 22-Jan-26 | 16.11 | 16.04 | (0.07) | ||
12.50 22-Jan-27 | 16.31 | 16.24 | (0.01) | ||
12.15 18-Jul-34 | 16.01 | 15.94 | (0.02) | ||
12.40 18-Mar-36 | 16.03 | 15.96 | (0.03) | ||
FGN Treasury Bills | |||||
Description | Bid (%) | Offer (%) | Day Change (%) | ||
3-Aug-17 | 19.38 | 19.13 | 0.38 | ||
14-Sep-17 | 17.10 | 16.85 | (0.75) | ||
5-Oct-17 | 19.06 | 18.81 | 0.06 | ||
2-Nov-17 | 18.71 | 18.46 | (0.19) | ||
4-Jan-18 | 19.12 | 18.87 | 0.07 | ||
1-Feb-18 | 19.03 | 18.78 | (0.07) | ||
1-Mar-18 | 18.69 | 18.44 | (0.11) | ||
5-Apr-18 | 18.68 | 18.43 | 0.03 | ||
3-May-18 | 18.56 | 18.31 | (0.04) |
Money Market Rates | |||||||
Current (%) | Previous (%) | ||||||
Open Buy Back (OBB) | 16.33 | 24.17 | |||||
Overnight (O/N) | 17.33 | 26.92 | |||||
FX Market | |||||||
Current (N/$) | Previous ( N/$) | ||||||
Interbank | 305.70 | 305.70 | |||||
CBN SMIS | 320.00 | 320.00 | |||||
I&E FX Window | 367.17 | 372.71 | |||||
Parallel Market | 365.00 | 365.00 | |||||
Primary Market Auction Results | |||||||
NTB – 14 June 2017 | |||||||
Tenor | Rate (%) | Offer (N’Bn) | Sub (N’Bn) | Sale (N’Bn) | |||
91 days | TBA | 39.06 | TBA | TBA | |||
182 days | TBA | 23.02 | TBA | TBA | |||
364 days | TBA | 174.64 | TBA | TBA | |||
FGN Bonds – June 2017 | |||||||
Tenor | Rate (%) | Offer (N’Bn) | Sub (N’Bn) | Sale (N’Bn) | |||
21-Jun | TBD | 40.00 | N/A | N/A | |||
27-Mar | TBD | 50.00 | N/A | N/A | |||
Apr-37 | TBD | 50.00 | N/A | N/A | |||
OMO – 13 June 2017 | |||||||
Tenor | Rate (%) | Offer (N’Bn) | Sub (N’Bn) | Sale (N’Bn) | |||
184 day | 18.00 | 5.00 | 0.32 | 0.32 | |||
352 day | 18.60 | 10.00 | 1.80 | 1.80 |
Eurobonds | |||
Issuer | Description | Yield (%) | Day Change (%) |
FGN | 6.38 12-Jul-23 | 5.59 | 0.04 |
FGN | 7.875 16-Feb-32 | 6.87 | 0.06 |
Fidelity Bank | 6.88 09-May-18 | 12.56 | (0.17) |
GT Bank | 6.00 08-Nov-18 | 4.32 | 0.02 |
Zenith Bank | 6.25 22-Apr-19 | 5.36 | (0.02) |
First Bank | 8.25 07-Aug-20 | 10.6 | (0.05) |
Access Bank | 7.677 24-Jun-21 | 9.33 | 0.01 |
(FMDQ, CBN, Bloomberg, Zedcrest)