FGN Bonds

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 29th.

***FG spends N851.4bn on JV oil assets***

Bonds: The FGN Bond market traded on a slightly weaker note, as spreads widened on the short end of the curve, following a slowdown in client demand interests. We, however, witnessed renewed interests for the long-tenured bonds, with significant demand witnessed especially on the 2037 bonds which declined by c.20bps on the day. Overall, yields were marginally higher by c.4bps on the day.

We expect yields to remain relatively stable in the near term, as investors maintain hunt for yields on the long end of the sovereign curve.

Treasury Bills: The T-bills market opened on a weaker note, as the depressed system liquidity levels forced some selloffs on the short end of the curve. The Market however improved slightly towards the close of the session, as inflows from FAAC payments during the session bolstered system liquidity into positive territory.

We expect yields to trend lower tomorrow, due to the improved system liquidity in the money market.

Money Market: Rates in the money fell by c.9pct as inflows from FAAC payments bolstered system liquidity. The OBB and OVN rates consequently ended the session at 13.14% and 14.29%, with system liquidity now estimated at c.N220bn positive.

We expect rates to trend lower tomorrow, due to the improved system liquidity levels.

FX Market: At the interbank, the Naira/USD rate declined by 5k to N306.85/$ at the spot market and by 2k to N357.68/$ in the SMIS window. The NAFEX closing rate at the I&E window declined by 10k to N361.87/$, whilst the cash and transfer rates at the parallel market remained stable at N357.50/$ and N362.00/$ respectively.

[READ: How Wealth.ng is breaking the barriers to investing in Nigeria]

Eurobonds: The NIGERIA Sovereigns weakened further in today’s session, with yields trending higher by c.8bps on the day.

The NIGERIA Corps remained relatively stable, with demand still firm across most tickers.


 

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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