Fixed Income

Welcome once again to our daily market report where we look at the daily performance of major economic indicators and highlights from trading sessions and key statistics such as Treasury Bills, bonds, FX rates, inflation, oil price.

This report is dated April 15th, 2019.

***Nigeria’s daily crude production in 2018 stood at 2.019m barrels*** – NNPC

Key Indicators


The FGN Bond market remained bullish in today’s session, with yields lower by c.5bps on average following renewed client interests mostly on the 2027s and 2028s which declined by c.20bps on the day.

We expect interests to remain relatively modest at current levels, with yields now trading slightly below the earlier resistance of c.14.50%. A further downtrend in yields below c.14.30% levels may however see renewed profit taking sentiments return.

Treasury Bills

The T-bills market traded on a bearish note, as a further squeeze in system liqudity resulted in slight selloffs on some short end mid tenured maturities. The longer end of the curve also pared some gains as the signifcant offshore interests from the previous session receded.

We expect yields to moderate slightly in tomorrow’s session, as funding pressures subside, whilst market players anticipate inflows from OMO maturities and FGN bond coupon payments on Thursday.

Money Market

Rates in the money market spiked by c.20pct as market players funded for the Wholesale FX auction by the CBN. The OBB and OVN rates consequently ended the session at 40.00% and 42.93%, with system liquidity estimated to be short c.N150bn.

Deal book 300 x 250

We expect rates to decline sharply tomorrow, as banks would be able to access the CBN’s SLF for their funding needs.

FX Market

At the Interbank, the Naira/USD rate was improved by 0.02% to N306.95/$ at the spot market, while the SMIS rate remained unchanged at N355.78/$. The NAFEX closing rate in the I&E window was relatively unchanged at N360.30/$, whilst market turnover fell by 73% to $112m. At the parallel market, the cash rate appreciated by 0.08% to N358.50, while the transfer rate remained unchanged at N364.00/$.

The NGERIA Sovereigns turned bullish in the first trading session of the week, with yields lower by c.7bps on the back of renewed demand interests, mostly on the mid to long end of the curve.

In the NGERIA Corps, the ETINL 24s remained the toast of investors, now up by a whopping 450bps since issuance, with yields traded as low as 8.62% during the session. We also witnessed slight demand for the ZENITH 22s, whilst investors remained slightly bearish on the ACCESS 21s.

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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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