Home Business News T-Bill Rates Decline Further in Absence of CBN OMO Auction

T-Bill Rates Decline Further in Absence of CBN OMO Auction


Welcome to Nairametrics‘ summary of the daily performance of major economic indicators and highlights from trading sessions and key statistics such as Treasury Bills. This is brought to you by Zedcrest.

This report is dated May 17th, 2019.

***ECOWAS single currency: Task force to give an assessment in June***

Key Indicators

Bonds: The FGN Bond market closed the week on a relatively flat note, with most trades focused around the mid-tenor maturities. Yields were a tad higher closing the day, as demand interests were relatively weaker compared to sentiments in the previous session. We consequently witnessed slight retracement in yields on the 21s and 26s which lifted the average yields marginally higher by c.2bps on the day.

We expect demand interest to remain relatively muted opening the new week, as market players anticipate a renewed supply of Bonds at the DMO’s monthly FGN bond Auction.

Treasury Bills: The T-bills market remained bullish, with yields declining further by c.12bps due to the dearth of the market offers from the continued lack of an OMO issuance by the CBN.

Coronation Research

Most of the offers on the mid to long end of the curve are now at sub-12% discount, and we expect rates to remain depressed in the medium term, unless the CBN resumes its OMO auction sales at higher discount levels.

Coronation Research

Money Market: Rates in the money market declined further by c.1pct as system liquidity remained robust at c.N290bn. The OBB and OVN rates consequently ended the session at 4.57% and 5.29%

We expect rates to trend slightly higher on Monday, as banks fund for the weekly wholesale FX auction by the CBN.

FX Market: At the Interbank, the Naira/USD rate was unchanged at N306.95/$ (spot) and N356.60/$ (SMIS). The NAFEX closing rate in the I&E window, however, rose slightly by 0.05% to N360.50/$, whilst market turnover fell by 70% to $152m. At the parallel market, the cash rate decreased by c.0.03% to N359.00/$, while the transfer rate remained unchanged at N363.50/$.

Eurobonds: The NIGERIA Sovereigns weakened slightly in today’s session, with yields marginally higher by c.3bps following a dip in oil prices.

In the NIGERIA Corps, we witnessed renewed interest for the longer-dated tickers, especially the Zenith and UBANL 22s.

Contact us:

Dealing Desk: 01-6311667 Email: research@zedcrestcapital.com


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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