13 JULY 2018 ( Lagos )

NTB’s and Money Market

Opening market liquidity on Thursday was N619bn (positive) buoyed by an OMO maturity of N315bn. Interbank rates closed within a range of 11% to 15%. At an OMO auction yesterday, the CBN raised N315bn from the sale of 70-day and 210-day paper at stop rates of 11.05% and 12.15%. On the NTB secondary market, yields dipped at the middle of the curve.

FGN Bonds and Euro Bonds

The FGN bond market was fairly active and there was an uptick in yields for selected maturities. As for the Eurobond market, yields showed no clear direction.

FX

The CBN’s daily fx intervention was again US$0.5m, at N305.30. Turnover at the NAFEX more than doubled from US$169m on Wednesday to US$365m. Indicative rates ranged from N355 to N363. According to the latest inflation report released yesterday by the US Labour Department, headline inflation picked up to 2.9% y/y in June from 2.8% the previous month. This was in line with market expectations. Without food and energy components, the index (core) rose by 2.3% y/y.

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

Reporting for EasyKobo on Friday, 13 July 2018 in Lagos, Nigeria