Bonds & Fixed Income | |
Bonds & Fixed Income | |
3732 VIEWS | |
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Tuesday, April 23, 2019 02:53 PM / Anchoria AM Research
Money Market
We expect the rates to inch higher this week as Banks prepare for
another round of CBN weekly FX auctions on Monday, biweekly retail FX auction
on Friday and Bond auction on Wednesday.
Instrument |
12/04/2019 |
18/04/2019 |
Change |
OBB |
20.29% |
9.86% |
-10.43% |
OVN |
21.57% |
10.57% |
-11.00% |
Source:
Anchoria AM Research, FMDQ OTC
Commodities
Brent Crude Oil and WTI Crude Oil rose by 0.59% and 0.73% to close at
$71.97 per barrel and $64.00 per barrel respectively due to the declining
inventories in US. Also, the Trump administration said it won’t renew waivers
that let countries buy Iranian oil without facing U.S. sanctions, a move that
shook energy markets and risked upsetting major importers such as China and
India.
Fixed Income
Bond:
FGN
Despite
a relatively quiet week, the Bond Market closed on a bullish note last week
with increased demand seen on most maturities especially 2023 (-26bps) and 2027
(-22bps) Bonds. Average yields fell by 9bps to close the week at 14.16%.
Week
Ahead: Following a resumption from the Easter Break on
Tuesday we expect the market to trade on a cautious note as investors prepare
for April Bond Auction in which the Debt Management office (DMO) is expected to
issue 5, 10- and 30-years bond worth N100 billion.
Secondary
Market
Source:
Anchoria AM Research, FMDQ OTC
Treasury
Bills
In
the absence of OMO auction during the week and as market participants expect a
reduction in spot rate in the next T-bills Primary Market Auction, the
secondary treasury bills market closed on a bullish note. Consequently, the
average yield fell by 11bps to close the week at 13.24%.
Secondary
Market
Source:
Anchoria AM Research, FMDQ OTC
Anchoria Research: +234 908 720
6076; research@anchoriaam.com
Related News
1. Invest in FGN Monthly Bond Auction –
April 2019
2. Ecobank Launches New 5-Year Eurobond at 9.75% Re-Offer
3. Outlook For Yields On FGN Bonds Remain Relatively Stable
With Renewed Buying Interests On Maturities
4. Bond Yields Maintain Slight Uptrend Following Selloff on
the 20-year
5. Bond Yields Trend Higher Following Selloff on Mid and
Long Tenors
6. Funding For CBN Wholesale FX Auction Pressures Short Term
Rates Higher
7. Average T-Bills Yield Contracts Marginally to 13.4% as
CBN Resumes OMO Auctions
8. Average Money Market Rate Rose By 5.45% To Settle At
15.72%
9. Bond Yields Compress Marginally Following Bargain Hunt on
Short Tenors