June 1 (Lagos) - Below is fixed income update. There was a Primary Market Auction and OMO auction this week for the T-Bills after the Democracy day break. The Stock market declined sharply at the end of the week as a result of money entering fixed income space. 

NTB’S and Money Market

Opening market liquidity on Thursday was N590bn (positive). Inter-bank rates closed within 2% to 7% levels. At an OMO auction on Thursday, the CBN raised N561bn from the sale of two maturities at stable stop rates of 11.05% for the shorter tenured bill and 12.15% for the longer maturity. On the NTB secondary market, yields continued their upward trend.

FGN bonds & Eurobonds 

The FGN bond market was fairly active. Yields showed no clear direction. As for the Eurobond market, yields picked up for all sovereigns under analyst coverage. 

The CBN’s daily fx intervention was again US$0.5m, at N305.45. Turnover at the NAFEX increased from US$571m on Wednesday to US$634m. Indicative rates ranged from N351 to N363. On Thursday, the USD strengthened against a basket of currencies following reports that the US government will impose tariffs on aluminum and steel imports from neighboring countries, as well as from the EU. The announcement has reignited fears of a global trade war.