Bonds & Fixed Income | |
Bonds & Fixed Income | |
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Thursday, June 25, 2020 / 8:22 AM / By Zedcrest Capital / Header Image Credit: ilearnlot
Below are highlights of trading activities in the fixed income and forex market on June 24, 2020
FGN Bonds
The bullish train slowed down in
today's session, with some profit-taking activities caused yields to retrace at
the head and belly of the curve. We noted sustained demand for mid- and
longer-dated papers, with the 30-year papers remaining the preferred bonds as
market participants hunted for the only yields available above 11.00%. Consequently,
yields expanded by an average of c.24bps across the benchmark curve.
We expect to trade with mixed
sentiments, as local investors continue to pounce on available offers as they
improve across the curve.
Benchmark FGN Bonds |
||||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
|
14.50 15-Jul-21 |
5.29 |
3.74 |
0.39 |
|
16.39 27-Jan-22 |
5.68 |
4.20 |
0.58 |
|
12.75 27-Apr-23 |
7.01 |
5.95 |
(0.37) |
|
14.20 14-Mar-24 |
9.62 |
6.25 |
2.29 |
|
13.53 23-Mar-25 |
8.10 |
6.99 |
0.45 |
|
12.50 22-Jan-26 |
9.12 |
7.98 |
0.11 |
|
16.29 17-Mar-27 |
9.78 |
9.19 |
0.00 |
|
13.98 23-Feb-28 |
9.90 |
8.86 |
0.00 |
|
14.55 26-Apr-29 |
9.89 |
9.04 |
0.00 |
|
12.15 18-Jul-34 |
10.62 |
10.25 |
(0.07) |
|
12.40 18-Mar-36 |
10.61 |
10.26 |
(0.06) |
|
16.2499 18-Apr-37 |
10.68 |
10.21 |
0.00 |
|
14.80 26-Apr-49 |
11.50 |
11.31 |
(0.15) |
|
Treasury Bills
There was some slight action
during the early hours of trading in the OMO bills space, as we saw demand from
offshore players for August/September bills. Offers were in the range of
3.80%-4.10% for these papers, although very little volumes printed in this
range. By mid-day, activities dwindled even as the market remained offered
across most of the benchmark curve. We also noted some trades on the 25 May 2021
bill, which traded around 5.75% close to the end of the session. Consequently,
yields expanded by c.16bps across the OMO curve.
We saw few retail-sized interests
in the NTB space, skewed to longer-dated bills (April 2021 papers and above).
Bids were more aggressive across the NTB curve although offers stayed far apart
thus resulting in no trades concluded. Yields compressed by an average of c.66bps
in the NTB space.
The market is expected to remain
calm, with some order-driven requests on selected papers expected.
Benchmark OMO Bills |
|||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
NGOMO 7/2/2020 |
5.00 |
1.50 |
0.00 |
NGOMO 8/13/2020 |
5.00 |
1.50 |
1.50 |
NGOMO 9/3/2020 |
5.25 |
2.00 |
0.25 |
NGOMO 10/1/2020 |
5.50 |
2.00 |
0.00 |
NGOMO 11/03/2020 |
5.50 |
2.50 |
(0.10) |
NGOMO 12/01/2020 |
6.00 |
4.00 |
0.00 |
NGOMO 01/05/2021 |
6.25 |
4.00 |
(0.25) |
NGOMO 02/02/2021 |
6.50 |
3.50 |
0.00 |
NGOMO 03/02/21 |
6.50 |
4.80 |
0.00 |
Benchmark NTBills |
|||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
NIGTB 2-Jul-20 |
3.00 |
1.00 |
0.00 |
NIGTB 1-Oct-20 |
2.25 |
1.00 |
(0.75) |
NIGTB 12-Nov-20 |
2.50 |
1.00 |
(1.50) |
NIGTB 14-Jan-21 |
3.25 |
1.00 |
(0.75) |
NIGTB 11-Feb-21 |
3.70 |
1.00 |
(0.30) |
Money Market
The Interbank market remained
illiquid, with most banks stuck at the SLF window amidst tight liquidity. OBB
rates remained unchanged while OVN rates inched up slightly by c.8bps from yesterday's
close. System liquidity is expected to close the day at c.N29.31BN.
As this system liquidity is
expected to persist in the interim, we expect interbank rates remain around
these levels tomorrow.
Money Market Rates |
||
|
Current (%) |
Previous (%) |
Open Buy Back (OBB) |
14.67 |
14.67 |
Overnight (O/N) |
15.75 |
15.67 |
FX Market
Supply remained poor in the I&E
FX window, with the traded volume stable at c.$90million same as the day
before. Most participants were bided between N385.00/$ and N389.00/$ with rates
depreciating by 0.13% D/D. Closing rates remained unchanged for other market
segments, as activities in the FX market remain low.
FX Market |
||
Current (N/$) |
Previous ( N/$) |
|
CBN Spot |
361.00 |
361.00 |
CBN SMIS |
380.69 |
380.69 |
`I&E FX Window |
387.17 |
386.63 |
Cash Market |
455.00 |
455.00 |
Transfer Market |
457.00 |
457.00 |
Eurobonds
The NGERIA Sovereign tickers strengthened in today's session as the market reacted positively to DMO's comments indicating no new Eurobond issues this year. Bids improved across the sovereign curve, with the most gains at the short-end of the curve. Yields compressed by c.19bps across the benchmark curve by the close of the day, the gains paling in comparison to the Angola papers which continued to rally for another consecutive session off the debt relief news.
The NGERIA Corps had a quiet session
today, amidst weak appetite. The SEPPLN 23s was the only gainer among tracked
papers, dropping by c.15bps D/D.
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3.
New Week, Same Song:
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4.
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6.
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7.
Some Room for Manoeuvre
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8.
Secondary Market Bond
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