News Update:
The World Bank has approved two Program-for-Results operations totaling $961 million to support the Nigerian federal and state authorities in their effort to foster inclusion and revive growth, in alignment with the Economic Recovery and Growth Plan (ERGP) of the Federal Government of Nigeria for 2017–2020.
Source: Leadership
We expect demand to continue to filter into the market as average bond yields remain above the 16.00% mark.”The bond market opened today on a bullish note on the back of the ag- gressive stop rates at the auction yesterday. The on-the-run 5yr and 10yr bonds (2021 and 2027 maturities) witnessed more patronage from market players with yields declining by 9bps from opening levels. Other bond maturities declined by an average of 5bps across the entire yield curve.
The Treasury Bills market was largely bearish as counterparties sold off their holdings in T-bills to create liquidity to fund their obligations. The floatation of a N45billion OMO for settlement same day further supported a sell-off in the market with special emphasis on short term T-bills. The naira liquidity conditions of Money Market will continue to dictate the yield direction in the T-bills market in the near term. Client orders will be filled mostly from auctions.
The OBB and O/N rates further declined to 8.50% and 9.80% as market liquidity improved due to inflows from maturing OMO T-bills (153bn) by the CBN. We expect the rates to close the week on a higher note as the CBN continues to mop-up liquidity via its daily OMO auctions.”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.25% |
| Exchange Rate ($) | N305.85 |
| MPR | 14.00% |
| Foreign Reserves | $30.21Bn |
| Brent Crude | $45.62 |
| FGN Bonds | |||||
| Description | Bid (%) | Offer (%) | Day Change (%) | ||
| 16.00 29-Jun-19 | 16.59 | 16.52 | (0.02) | ||
| 15.54 13-Feb-20 | 16.42 | 16.35 | (0.02) | ||
| 14.50 15-Jul-21 | 16.32 | 16.25 | (0.09) | ||
| 16.39 27-Jan-22 | 16.21 | 16.14 | (0.02) | ||
| 14.20 14-Mar-24 | 15.92 | 15.85 | (0.04) | ||
| 12.50 22-Jan-26 | 16.12 | 16.05 | (0.07) | ||
| 12.50 22-Jan-27 | 16.24 | 16.17 | 0.08 | ||
| 12.15 18-Jul-34 | 16.01 | 15.94 | (0.05) | ||
| 12.40 18-Mar-36 | 16.00 | 15.93 | (0.07) | ||
| FGN Treasury Bills | |||||
| Description | Bid (%) | Offer (%) | Day Change (%) | ||
| 3-Aug-17 | 19.00 | 18.75 | 0.50 | ||
| 14-Sep-17 | 15.35 | 15.10 | 0.10 | ||
| 5-Oct-17 | 19.30 | 19.05 | 0.40 | ||
| 2-Nov-17 | 19.15 | 18.90 | 0.20 | ||
| 4-Jan-18 | 18.95 | 18.70 | (0.05) | ||
| 1-Feb-18 | 18.70 | 18.45 | 0.00 | ||
| 1-Mar-18 | 18.50 | 18.25 | 0.00 | ||
| 5-Apr-18 | 18.60 | 18.35 | 0.00 | ||
| 3-May-18 | 18.50 | 18.25 | 0.00 | ||
| Money Market Rates | |||||||
| Current (%) | Previous (%) | ||||||
| Open Buy Back (OBB) | 8.50 | 18.00 | |||||
| Overnight (O/N) | 9.08 | 19.00 | |||||
| FX Market | |||||||
| Current (N/$) | Previous ( N/$) | ||||||
| Interbank | 305.85 | 305.85 | |||||
| CBN SMIS | 320.00 | 320.00 | |||||
| I&E FX Window | 363.00 | 365.86 | |||||
| Parallel Market | 366.00 | 365.50 | |||||
| Primary Market Auction Results | |||||||
| NTB – 21 June 2017 | |||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | |||
| 91 days | 13.50 | 28.12 | 28.12 | 28.12 | |||
| 182 days | 17.50 | 55.12 | 43.84 | 43.84 | |||
| 364 days | 18.65 | 50.00 | 82.25 | 61.29 | |||
| FGN Bonds – 21 June 2017 | |||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | |||
| 21-Jun | 16.1900 | 40.00 | 12.52 | 4.22 | |||
| 27-Mar | 16.1900 | 50.00 | 57.35 | 30.25 | |||
| Apr-37 | 16.1965 | 50.00 | 88.24 | 64.79 | |||
| OMO – 22 June 2017 | |||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | |||
| 168 day | 18.00 | 10.00 | 0.38 | 0.38 | |||
| 357 day | 18.60 | 40.00 | 22.34 | 22.34 | |||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 6.04 | (0.01) |
| FGN | 7.875 16-Feb-32 | 7.15 | (0.01) |
| Zenith Bank | 6.25 22-Apr-19 | 6.04 | 0.12 |
| Diamond Bank | 8.75 21-May-19 | 14.28 | 0.13 |
| First Bank | 6.488 23-Jul-21 | 11.23 | 0.25 |
| Ecobank | 8.75 14-Aug-21 | 11.86 | 0.00 |
| Access Bank | 10.50 19-Oct-21 | 8.37 | 0.02 |
Sources: FMDQ, CBN, Bloomberg, Zedcrest research
