13 June 2018 ( Lagos )

NTB’s and Money market 

Opening market liquidity on Tuesday was N150bn (positive). Interbank rates closed within a higher range of 12% to 17% levels due to debits for the fx wholesale intervention. On the NTB secondary market, yields dipped for selected maturities at the longer end.

FGN and Euro Bonds

The FGN bond market was relatively quiet, and yields contracted for most maturities. As for the Eurobond market, there was a general uptick in yields across the curve.

FX 

The CBN’s daily fx intervention was again US$0.5m, at N305.40. Turnover at the NAFEX declined from US$269m on Monday to US$224m. Indicative rates ranged from N340 to N363. According to the US Labor Department, headline inflation picked up from 2.5% to 2.8% y/y in May and core inflation from 2.1% to 2.2%. The measure tracked by the Fed is just below the 2.0% target level, analysts understand. Steadily rising inflation and a tightening labor market point to a rate hike by the FOMC at its current meeting, which is slated to end today. 

Source: Gregory Kronsten, Olubunmi Asaolu, and Chinwe Egwim from FBNQuest Capital Limited