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 Bond. This is brought to you by Zedcrest.

This report is dated July 17th, 2019.

***NNPC awards crude-for-fuel swap contracts***

Bonds: The FGN Bond market remained bullish with yields lower by c.7bps on the day as real money clients sought to re-invest coupon payments. Demand interests were focused on the mid to long end of the curve, where yields dropped by c.12bps.

We expect demand interests to persist due to the depressed rates in the T-bills market.

Business day

Treasury Bills: The T-bills market was relatively mixed, with a slight uptick on the short end of the curve, whilst demand interests remained robust on the mid to long end of the curve. Yields were consequently flat on the day as market players positioned for the NTB auction scheduled for tomorrow.

We expect stop rates to clear significantly lower from their previous auction levels at the NTB auction tomorrow, where the CBN is expected to rollover c.N107bn of maturing bills.

Deal book 300 x 250

Money Market: Rates in the money market remained relatively stable as system liquidity remained robust at c.N350bn. The OBB and OVN rates consequently ended the session at 2.50% and 3.07% respectively.

We expect rates to remain stable as there are no significant outflows anticipated.

[READ: T-Bill Yields Trade Flat as Market Players Shun Lower Rates]

FX Market: At the interbank, the Naira/USD rate remained stable at N306.95/$ (spot), and N357.70/$ (SMIS). The NAFEX rate at the I&E window rose higher by 15k to N361.25/$, whilst the market turnover rose higher by c.110% to $340m. At the parallel market, the cash and transfer rate remained stable at N358.10/$ and N361.50/$ respectively.

Eurobonds: Demand Interests in the NIGERIA Sovereigns remained robust, with yields lower by c.6bps on the day

In the NIGERIA Corps, we witnessed sustained demand on the ETINL 24s and slight interest on the SEPLLN 23s. Offers were however slightly improved on the ACCESS 21s and ZENITH 22s.


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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