This is the summary of the daily performance of major economic indicators and highlights from trading sessions and key statistics such as Treasury Bills and FGN Bonds.
This report is dated July 25th.
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Bonds: Yields in the FGN Bond market declined significantly by c.17bps, as market players reacted to the strong demand and relative undersupply of bonds at the auction in the previous session. The most impact was felt on the short and mid-end of the curve due, to the significant amount of unsuccessful bids and lower clearing rates on those tenors.
We expect yields to remain depressed in the interim, due to the paucity of offers in the market.
Treasury Bills: The T-bills market traded with mixed sentiments during the session, with inflows from OMO T-bill maturities spurring slight interests on the long end of the curve, whilst we witnessed more profit-taking around the mid tenors as market players sought to raise liquidity for their funding obligations.
We expect yields to remain slightly pressured tomorrow, with outflows for bond auction settlement expected to further impact on system liquidity levels.
Money Market: Rates in the money market remained elevated, despite the OMO T-bill inflows of c.N90bn. The OBB and OVN rates consequently ended the session at 14.29% and 15.00%, with system liquidity currently estimated at c.N30bn.
We expect rates to trend higher tomorrow, due to expected outflows for the FGN bond auction settlement (N86bn).
FX Market: At the interbank, the Naira/USD rate remained stable at N306.90/$ (Spot) and N357.70/$ (SMIS). The NAFEX closing rate at the I&E window rose further by 16k to N361.91/$, whilst the market turnover dipped by 55% to $173m. At the parallel market, the cash and transfer rates rose by 20k and 50k to N357.70/$ and N362.00/$ respectively.
Eurobonds: The NIGERIA Sovereigns sustained gains in today’s session, with yields lower by c.7bps on the day.
The NIGERIA Corps were relatively stable, but with slight gains witnessed on the ACCESS 21s, ZENITH 22s and UBANL 22s.
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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.