Welcome to Nairametrics‘ summary of the daily performance of major economic indicators and highlights from trading sessions and key statistics such as Treasury Bills and Bonds. This is brought to you by Zedcrest.
This report is dated May 27th, 2019.
***Buhari Signs 2019 Budget***
Bonds: The FGN Bond market remained relatively stable with slight interests on the short end of the curve, pressuring yields lower by c.2bps on the day.
Yields are expected to remain relatively stable in the near term, with market players expected to favour the short term bonds over the longer-dated bonds.
Treasury Bills: The T-bills market was relatively flat, with yields relatively unchanged on the day, as a wholesale FX auction by the CBN mopped up the surplus liquidity in the money market.
We expect rates to remain relatively stable at these levels, as market players look forward to the PMA which would hold upon resumption from the democracy daybreak.
Money Market: Rates in the money market inched higher by c.3pct due to funding for the CBN’s Wholesale FX auction. The OBB and OVN rates consequently ended the session at 14.50% and 15.29%, with system liquidity now estimated at c.N15bn.
We expect rates to trend slightly lower tomorrow, as there are no significant outflows anticipated.
FX Market: At the Interbank, the Naira/USD rate increased by 0.02% to N306.95/$ at the spot market, while the SMIS rate remained unchanged at N356.92/$. The NAFEX closing rate in the I&E window also increased by 0.06% to N360.59/$, as the market turnover declined further by 37% to $137m. At the parallel market, the cash rate and transfer rate remained unchanged at N359.00/$ and N363.50/$ respectively.
Eurobonds: The NIGERIA Sovereigns were flat on the day, due to the Bank holidays in the US and UK.
We still witnessed some local interests in the NIGERIA Corps, with demand mostly on the FIDBAN 22s and ETINL 24s.
Dealing Desk: 01-6311667 Email: [email protected]
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.