Daily performance of major economic indicators and highlights from tradings sessions and key statistics such as Treasury Bills, bonds, FX rates, inflation, oil price. This report is dated April 10th.

Bond Yields Trend Higher Following Selloff on Mid and Long Tenors

***Senate approves N1.64tr new borrowing to fund budget deficit***

Key Indicators

Bua group

Bonds

The FGN Bond market traded on a bearish note, with yields rising higher by c.10bps on the day following some selloff mostly on the 2027s and 2036s towards the close of trading, with yields on both maturities traded as high as 14.75%.

We expect yields to remain slightly pressured tomorrow, as selling interests persist especially on the mid to long end of the curve.

Treasury Bills

Trading sentiments in the T-bills market remained relatively flat as buying interests were constrained by the tight system liqudity levels. Traders were better buyers however of some short tenors, while sentiments on the mid to long end of the curve remained slightly bearish.

We expect trading activities to remain relatively muted in the near term, due to the relatively subdued interests for Tbills at current levels.

Money Market

Rates in the money market moderated by c.4pct despite the despite the relatively tight system liquidity levels, as banks were able to access the CBN’s SLF for their funding needs. The OBB and OVN rates consequently ended the session at 15.43% and 16.21% respectively.

We expect rates to remain at current levels tomorrow, as there are no significant inflows anticipated.

FX Market

At the Interbank, the Naira/USD rate was unchanged at N307.00/$ (spot) and N355.78/$ (SMIS). The NAFEX closing rate in the I&E window appreciated marginally by 0.04% to N360.55/$, as market turnover improved by 50% to $132m. At the parallel market, the cash rate depreciated further by 0.14% to N358.90/$, whilst the transfer rate remained unchanged at N364.00/$.

Eurobonds

The Nigeria sovereigns recorded some gains in today’s session, with yields marginally lower b c.2bps on the day. Whilst we witnessed renewed demand for some short and mid tenors, we witnessed slight sell on the longer end of the curve.

In the Nigeria Corps, we witnessed continued interests on the ACCESS 21s Snr, ZENITH 22s and FIDBAN 22s.

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Contact us:

Dealing Desk: 01-6311667

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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