21 June 2018 ( Lagos )

NTB’s and Money Market

Opening market liquidity on Wednesday was N212bn (positive). Interbank rates inched higher to close within a range of 12% to 15%. There was a primary market auction of NTBs. The CBN raised N40.0bn in the sale of 91-day, 182-day and 364-day paper at stop rates of 10.00%, 10.30% and 11.50% respectively. On the NTB secondary market, yields eased across traded maturities.

FGN Bonds and Euro Bonds

The FGN bond market was relatively quiet, and yields were generally flat. At the Eurobond market, yields declined for the sovereigns under analyst’s coverage other than the very short maturity sovereign.

FX           

The CBN’s daily fx intervention was again US$0.5m, at N305.35. Turnover at the NAFEX increased from US$252m on Tuesday to US$342m. Indicative rates ranged from N340 to N362. Oil prices rose after the EIA reported that US crude stocks fell by 5.9 million barrels against the 1.9 million barrel draw expected. The GBP slid early in the day on Wednesday on a stronger USD and Brexit concerns, but pared losses after the May administration won a crucial Brexit vote by lawmakers. The Bank of England is set to announce its latest policy rate decision today.

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