FGN Bonds, bond

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 June 27th, 2019.

***FG, States, LGs Share N679.699bn May Allocation***

Key Indicators

Bonds: The FGN Bond market traded on a firmly bullish note with yields declining by c.10bps on the day. This came on the back of the slight oversubscription at the previous day’s bond auction and the 29-Jun-2019 expected bond maturity of c.N351bn.

We expect yields to remain relatively stable in the near term, with support from stable oil prices and lower T-bill yields.

Treasury Bills: The T-bills market was relatively flat, despite the significant inflows from OMO maturities by the CBN. Spreads were however wider as offers depressed further across the curve.

We expect yields to remain depressed in the near term, due to the continued absence of an OMO auction by the CBN.

Money Market: Rates in the money market moderated further by c.1pct as system liquidity was further bolstered by c.N210bn OMO inflows. The OBB and OVN rates consequently ended the session at 4.50% and 4.64%, with system liquidity now estimated at c.N550bn positive.

We expect rates to close the week at these levels, as there are significant outflows expected tomorrow.

FX Market: At the interbank, the Naira/USD rate remained stable at N306.90/$ (spot) and N357.53/$ (SMIS), whilst the NAFEX rate at the I&E window rose by 13k to N360.88/$. At the parallel market, the cash and transfer rates closed unchanged at N359.20/$ and N362.50/$ respectively.

Eurobonds: The NIGERIA Sovereigns were stronger during the session, with yields lower by c.6bps following firm demand interest across most of the curve. Rising oil prices in recent sessions have been supportive of the positive sentiments.

Demand Interests in the NIGERIA Corps remained intense, with most papers trending significantly higher on the day. The ETINL 24s for example traded sub-7% during the session and is now on full bid at that level.


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 advice 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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