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Debt Securities

Bond Yields Trend Lower as Market Players Re-Invest Coupon Inflows

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.

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FGN Bonds, bond, DMO set to auction N150 billion in FGN Bonds to investors , FGN Bond for February 2020 oversubscribed by investors, DMO suspends April 2020 FGN savings bond offer

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.

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.

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.

Jaiz bank

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: [email protected]

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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Debt Securities

DMO to auction N150 billion bond for May on behalf of FG

The DMO on behalf of the Federal Government has announced the offer of N150 billion bonds for subscription by auction for the month of May.

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The Debt Management Office (DMO) on behalf of the Federal Government has announced the offer of N150 billion bonds for subscription by auction for the month of May.

A breakdown of the bonds shows that a 10-year reopening bond is to be offered at the rate of 16.2884% with a maturity date in March 2027; a 15- year reopening bond will be offered at 12.5% with a maturity date in March 2035; and the third and longest bond which is a 30-year reopening bond will be offered at 14.8% and mature in April 2045.

This disclosure is contained in a circular issued by the DMO on May 11, 2021, and can be seen on its website.

The circular from the DMO states that the bonds which will be auctioned on May 19, 2021, have a settlement date of May 21, 2021, adding that the unit sales is N1,000 per unit subject to a minimum subscription of N50,000,000 and in multiples of N1,000 thereafter.

It also states that the interest is payable semi-annually with the redemption expected to be in bullet payment on the maturity date.

In case you missed it

The DMO had earlier disclosed that N150 billion Federal Government’s bonds offered for the month of March were over oversubscribed by N115.68 billion

The total subscription received from investors for the bonds was N265.68 billion, comprising N34.69 billion at 12.25% FGN with a maturity date of March 17, 2027; N56.13 billion at 13.34% with a maturity date of March 27, 2035; and N174.86 billion at 13.85% with a maturity date of July 24, 2045.

The auction result showed that the total bids were 50, 75 and 184, while the successful bids were 23, 43 and 91 for the 3 bonds allotted.

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Debt Securities

DMO announces May 2021 FGN savings bond offer for subscription

The DMO has announced the offer for subscription of the May 2021 Federal Government Savings Bond to investors.

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on

The Debt Management Office (DMO), on behalf of the Federal Government has announced the offer for subscription of the May 2021 Federal Government Savings Bond to investors.

This disclosure is contained in a circular issued by the DMO on May 3, 2021, and can be seen on its website noting that there are 2-year and 3-year savings bonds.

A breakdown of the bonds shows that the 2-year FGN savings bond will be due on May 12, 2023, at 7.753% per annum and the 3-year FGN Savings Bond which will be due on May 12, 2024, at 8.753% per annum.

The offer has an opening date of May 3, with a closing date of May 7, while the settlement date is May 12, with the coupon payment dates as follows: August 12, November 12, February 12 and May 12.

The circular also states that the unit of sale is N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50,000,000

It also states that the interest is payable quarterly with the redemption expected to be in bullet payment on the maturity date.

In case you missed it

It can be recalled that last month, the DMO on behalf of the Federal Government, offered for subscription April 2021, Federal Government Savings Bond to investors.

The offer consisted of a 2-Year FGN Savings Bond due April 14, 2023, at 5.522% per annum and a 3-year FGN Savings Bond due April 14, 2024, at 6.522% per annum.

The opening date was April 6, 2021, with the closing date on April 9, 2021, settlement date on April 14, 2021, and the coupon payment dates on July 14, October 14, January 14, and April 14.

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