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

***Nigeria Seeks Concessional Loans Over Bonds as Debt Costs Rise *** – Bloomberg

Key Indicators

Bua group

Bonds

The FGN Bond market traded on a relatively quiet note except for slight sell witnessed on the 2028 bond towards the close of the trading session. Yields however compressed by c.3bps on average, following slight decline in yields on the short end of the curve.

We expect demand interests to be relatively muted, with yields expected to remain stable in the near term.

Benchmark FGN Bonds

Source: Zedcrest Dealing Desk

Treasury Bills

The T-bills market traded on a relatively quiet note, with yields trending slightly higher following an OMO auction announcement by the CBN. The OMO auction was however oversubcribed by c.105%, leading to a further cut in stop rates by 4bps to 11.80% on the 93-day and by 6bps to 13.14% on the 205-day, with total sale of N15.90bn and N100.41bn respectively.

The CBN would conduct an NTB auction tomorrow, with only c.N49bn T-bills on offer. Given the signifcantly smaller amount of T-bills on offer, we expect stop rates to clear at about 15 – 30bps lower than their levels in the previous week’s auction.

OMO Auction Result

Source: CBN

NTB Auction Expectation

Source: Zedcrest Research

Benchmark Treasury Bills

Source: Zedcrest Dealing Desk

Money Market

Rates in the money market trended higher by c.2pct due to the c.N116bn OMO sale which led to a decline in system liquidity from opening levels of c.N285bn. The OBB and OVN rates consequently ended the session at 12.00% and 12.67% respectively.

We expect rates to remain relatively stable tomorrow, as there are no significant outflows anticipated.

Money Market Rates

Source: FMDQ, Zedcrest Research

FX Market

At the Interbank, the Naira/USD rate strengthened by 0.02% to N306.90/$ at the spot market, while the SMIS rate remained unchanged at N356.92/$. The NAFEX closing rate in the I&E window appreciated by 0.13% to N360.13/$, while the cash and transfer rates at the parallel market remained unchanged at N357.80/$ and N364.00/$ respectively.

FX Market

Source: CBN, FMDQ, REXEL BDC

Eurobonds

The NGERIA Sovereigns remained bullish, with yields lower by c.7bps on average. The most demand was still witnessed in the belly of the curve which gained c.0.60pct on the day.

In the NGERIA Corps, we witnessed slight interests on the FBNNL 21s and FIDBAN 22s.


Contact us: Dealing Desk: 01-6311667 | Dayo: 07032208237 | Seyi: 08023231396 | Nnamdi: +2348133385000 | Tosin: +2347039394376
Email: research@zedcrestcapital.com
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 to make an investment decision.

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