Nairametrics
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Markets

Anchoria Fixed Income Monitor: T-bills Stop Rates increase first time in 3 months

Op-Ed Contributor by Op-Ed Contributor
June 13, 2020
in Markets, Op-Eds, Securities, Spotlight
Treasury Bills, CBN
Share on FacebookShare on TwitterShare on Linkedin

Money Market:

The average money market rate fell significantly last week by 4.79% to settle at 3.09% from 7.88% in the previous week. This is attributable to the inflow from OMO maturities of N209.05 billion and NTB Maturity of N38.00 billion during the week.

Notable outflows for the week included weekly FX wholesale SMIS of $210mn and NTB auction of N142.76bn. The CBN declared OMO auction held during the week No Sale.

We expect the system liquidity to be slightly buoyant with N17.87 billion FGN Bond coupon payments expected during the week

Forex: USD/NGN

During the week the foreign reserve rose by 2.87% to $34.44 billion due to the inflow of $3.4 billion Emergency Loan from IMF. In light of this, the I&E FX window rose by 0.32% to close at N386.00/$ while the CBN official rate remained stable at N361.00/$.

Despite the inflow from the IMF, there is still volatility in the currency market as Foreign Investors and Importers continually increase their demand for the greenback.

We expect continuous fluctuations in the rates in the foreign market as the pandemic continues to pose a threat to the economy.

(READ MORE: Fixed Income Market Monitor (Monday, 06-Friday, 10 May 2019))

Bond: FGN

The secondary sovereign Bond market closed bearish last week as the average yield rose by 33bps to close at 10.55% compared to 10.22% in the previous week. The highest yield increase was witnessed in the MAR-2024 issuance which rose by 122bps to close at 9.61% while the highest yield decline was witnessed in the MAR-2027, fell by 21bps to close at 10.97% from 11.18%.

Why Forex trading is becoming popular in Nigeria, Anchoria Fixed Income Monitor: T-bills Stop Rates increase First time in 3 Months
Forex trading

 

The Sovereign Eurobond market closed on strongly bullish as the average yield fell by 302bps to close at 7.38% compared to 10.40% the previous week. This can be traced to the highest increase in Crude Oil Price since March and the increase in the country’s external reserve while the Corporate Eurobond market closed bullish as the average yield fell by 498bps to close at 8.72% compared to 13.70% the previous week.

We expect to widen in bond yield as investors anticipate the upcoming Bond auction worth N60.00 billion by the DMO

Treasury Bills

The T-bills secondary market closed on a bullish note last week as the average yield fell by 38bps to close at 2.28% compared to 2.66% the previous week due to the trading activity in the market following the auction held during the week. In the same vein, OMO bills fell by 163bps to close at 8.45% compared to 10.08% the previous week.

At the T-bills auctions, the DMO allotted 142.76 billion worth of bills. 91 day – N19.78 billion, N40.09 billion for 182-day, and N82.89 billion for the 364 days. The stop rates closed at 2.50%, 2.85%, and 3.84% respectively.

(READ MORE: Nigeria’s external reserves increased by $1.36 billion in 13 days)

Commodities

Brent oil rose by 17.13% to close at $32.50 compared to $30.97 last week while WTI rose by 18.96% to close at $29.43. The increase is due to the growing demand for fuel, as nations around the globe eased travel restrictions, which they had imposed to limit the spread of the COVID-19 pandemic. The reopening of the economies had a beneficial effect on oil prices.

Treasury Bill Investment: Ghana Vs Nigeria, Further rate decline expected as N405 billion worth of treasury bills mature , CBN’s N225.45 billion T-bills auction records oversubscription, as rate fall below 5% , Nigeria’s 364-day treasury bills falls to 3.84% per annum, Anchoria Fixed Income Monitor: T-bills Stop Rates increase First time in 3 Months

 

Another contributory factor in oil price rise is the surprise crude inventory drawn by the Energy Information Administration. In gasoline, the EIA reported an inventory draw of 3.5 million barrels while distillate fuels, the EIA reported an inventory rise of 3.5 million barrels for last week.

You may download the full report by clicking here.


CONTACTS: Anchoria Asset Management Limited 5th Floor, Elephant House 214, Broad Street Marina Lagos
Investment Research research@anchoriaam.com +234 908 720 6076

Wealth Advisory investor-relations@anchoriaam.com +234 818 889 9455

Related

Tags: Business NewsCommoditiesFixed IncomeforexmarketsMoney marketsTreasury Billstreasury bills

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Access Bank
Bankers Committee
First bank


Flowmono

Bfpeer
Mega Millions
FCMB
Ikeja Electrics
Zenith CEX
Kwakol Markets




    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Airbnb to close its domestic business in China
    • Court convicts former Reps member, Chuma Nzeribe of impersonation, forgery
    • NNPC, Sahara Group invests USD300m in gas carriers to drive clean energy access in Africa

    Follow us on social media:

    Recent News

    Airbnb, HotelTonight, Sheraton, Hospitality business

    Airbnb to close its domestic business in China

    May 23, 2022
    Court convicts former Reps member, Chuma Nzeribe of impersonation, forgery

    Court convicts former Reps member, Chuma Nzeribe of impersonation, forgery

    May 23, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Ranking & Reviews
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • General News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com