Bonds, CBN
Nigerian Stock Exchange Trading Floor

Daily performance of major economic indicators and highlights from tradings sessions and key statistics such as T-bills, bonds, FX rates, inflation, oil price.

FGN Eurobond Yields Trend Higher as Presidency Seeks Approval for New Issue

Buhari seeks NASS approval for $2.78bn Euro bonds

KEY INDICATORS

Bonds

The bond market traded on a relatively flat note in today’s session, with slight buying interests seen on the 26s and 37s, whilst we saw better sellers of the 36s. Yields consequently compressed marginally by c.1bp on average.

We expect yields to remain relatively stable in the near term, as the market remains largely driven by client interests. We however expect yields to trend higher towards month end, as market players price in expectations for renewed supply of bonds at the next FGN Bond Auction.

Treasury Bills

The T-bills market remained scantily traded, with yields compressing marginally by c.5bps on average. We however noted some profit taking on the longer end of the curve, in anticipation of another OMO auction on Thursday.

We expect some more profit taking activities and slight selloff as market players reposition ahead of the OMO auction expected by the CBN on Thursday.

Money Market

The OBB and OVN rates remained relatively stable, closing today at 9.17% and 10.00% as system liquidity remained buoyant at c.N244bn positive.

We expect rates to remain stable, with no significant outflows expected tomorrow.

FX Market

At the Interbank, the Naira/USD rate remained stable at N306.40/$ (spot) and N361.34/$ (SMIS). At the I&E FX window a total of $106.40mn was traded in 252 deals, with rates ranging between N358.00/$ – N365.00/$. The NAFEX closing rate appreciated by c.0.09% to N364.27/$ from N364.61/$ previously.

At the parallel market, the cash rate depreciated by 30k to N360.00/$, while the transfer rate remained stable at N363.00/$.

Eurobonds

The NGERIA sovereigns maintained its recent bearish trend, with yields surging by c.8bps following moves by the Federal Govt to obtain approval for a fresh $2.78bn capital raise from the international market. We witnessed the most selloff on the 30-yr which lost c.1.50pct in price terms.

The NGERIA Corps were mostly quiet, except for slight interests seen on the DIAMBK 19s, which gained c.0.30pct on the day.


Disclaimer:

Whilst proper and reasonable care has been taken in the preparation and accuracy of the facts and figures presented in this report, no responsibility or liability is accepted by Zedcrest Capital or its employees for any error, omission or opinion expressed herein. This report is not an investment research or a research recommendation and should not be regarded as such. The information provided herein is by no means intended to provide a sufficient basis on which

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