Fixed Income Market Update   

27 July 2018 ( Lagos ) 

NTB’s and Money Market

Opening market liquidity on Thursday was an estimated N230bn (positive). In addition, there was an inflow of N404bn from an OMO maturity. At an OMO auction yesterday, the CBN raised N349bn from the sale of 91-day and 210-day paper at stop rates of 11.05% and 12.15%. Interbank rates closed within a range of 7% to 11%. On the NTB secondary market, yields picked up at the shorter end.

FGN Bonds and Euro Bonds

The FGN bond market was relatively quiet, and yields picked up selectively in response to Wednesday’s bond auction. At the auction, stop rates for the 5, 7 and 10-year issues rose to 13.69%, 14.00% and 14.30% respectively from 13.50%, 13.80% and 13.81%. As for the Eurobond market, yields narrowed for all instruments excluding one .



The CBN’s daily fx intervention was again US$0.5m, at N305.40. Turnover at the NAFEX increased from US$106m on Wednesday to US$266m. Indicative rates ranged from N356 to N363. On Thursday the USD strengthened against a basket of currencies including the EUR, after the European Central Bank (ECB) Governing Council predictably voted to maintain its policy rates. At a press conference following the announcement, the ECB President, Mario Draghi, reiterated the council’s commitment to hold rates until Q3 2019.

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

Reporting for EasyKobo on Friday, 27 July 2018 in Lagos, Nigeria

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