| Bonds & Fixed Income |    4549 VIEWS  |
| Bonds & Fixed Income | |
| 4549 VIEWS | |
 |
|
Inflation |
14.33% |
Declined by 0.80% in February from 15.13% in January
2018 |
|
MPR |
14.00% |
Left unchanged at 14.00% at the MPC meeting of November
2017 |
|
External Reserves |
$45.36billion |
Accreted 1.54% as at 22 March from $45.20bn as at 21
March 2018 |
|
Brent Crude |
$69.58pb |
Rose by 0.19% from $69.45pb on 22 March 2018 |
|
FGN Bonds |
|||
|
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
|
16.00 29-Jun-19 |
14.10 |
14.03 |
0.44 |
|
15.54 13-Feb-20 |
13.86 |
13.79 |
0.30 |
|
14.50 15-Jul-21 |
13.80 |
13.73 |
0.15 |
|
16.39 27-Jan-22 |
13.62 |
13.55 |
0.06 |
|
14.20 14-Mar-24 |
13.61 |
13.54 |
0.08 |
|
12.50 22-Jan-26 |
13.80 |
13.73 |
0.18 |
|
16.29 17-Mar-27 |
13.74 |
13.67 |
0.12 |
|
12.15 18-Jul-34 |
13.61 |
13.54 |
0.08 |
|
12.40 18-Mar-36 |
13.49 |
13.42 |
0.04 |
|
16.25 18-Apr-37 |
13.39 |
13.32 |
0.03 |
Source: Zedcrest Dealing Desk
Treasury Bills
The T-bills market traded on a
relatively flat note as system Liquidity remained relatively tight at c.N75bn
positive. We however witnessed slight buying interests as the CBN did not
conduct an OMO Auction for the second consecutive session of the week. With
expected inflows from retail refunds tomorrow and OMO maturities Thursday, we
expect renewed buying sentiments in the T-bills space. This should however be
moderated by a resumption in OMO T-bill auctions by the CBN.
|
Treasury
Bills |
|||
|
Description |
Bid
(%) |
Offer
(%) |
Day
Change (%) |
|
12-Apr-18 |
13.95 |
13.80 |
0.00 |
|
3-May-18 |
14.10 |
13.95 |
0.00 |
|
14-Jun-18 |
14.20 |
14.05 |
0.15 |
|
5-Jul-18 |
14.00 |
13.85 |
(0.05) |
|
2-Aug-18 |
14.05 |
13.45 |
0.00 |
|
13-Sep-18 |
13.95 |
13.80 |
(0.10) |
|
4-Oct-18 |
14.15 |
14.00 |
(0.05) |
|
1-Nov-18 |
14.30 |
14.15 |
(0.05) |
|
3-Jan-19 |
13.35 |
13.20 |
0.00 |
|
14-Feb-19 |
13.25 |
13.10 |
0.00 |
Source: Zedcrest Dealing Desk
The OBB and OVN rates calmed to 20.17% and 21.92% from
c.40% levels in the previous session. This came as there were no significant
funding pressures in the system, coupled with expectations of inflows from
retail FX refunds by the CBN. We expect rates to trend further southwards
tomorrow, with inflows from the refunds expected to bolster system liquidity.
|
Money
Market Rates |
||
|
|
Current
(%) |
Previous
(%) |
|
Open Buy Back (OBB) |
20.17 |
43.33 |
|
Overnight (O/N) |
21.92 |
44.25 |
Source: FMDQ, Zedcrest Researc
The Interbank rate remained stable at its previous
rate of N305.65/$, with the CBN’s external reserves recorded to have improved
by 1.51% to $46.04bn as of 26 March. The NAFEX rate fell by 0.05% to N360.23/$,
with total volume traded rising slightly by 3.18% to $285m. Rates in the
Unofficial market also fell by 0.03% to N361.20/$.
|
FX Rates |
||
|
|
Current
(N/$) |
Previous
( N/$) |
|
CBN Spot |
305.65 |
305.65 |
|
CBN SMIS |
330.00 |
330.00 |
|
I&E FX Window |
360.23 |
360.06 |
|
Parallel Market |
361.20 |
361.10 |
Source: CBN, FMDQ, REXEL BDC
Eurobonds
We witnessed significant interests
in the NGERIA Sovereigns, with investors still very bullish on the long
end of the curve, even as we observed rallies across other SSA sovereigns
(KENINTs, SENEGLs and ZAMBINs) as well.
The 32s, 38s and 47s were the highest gainers, pushing the curve lower
by c.7bps (+0.5pt).
The Nigerian banks were
also bullish on most tickers especially on the FBNNL 21s, ACCESS 21s snr, and
the ZENITH and UBANL 22s. This was however to the exception of the FBNNL 20s
which witnessed slight retracements from its previous day’s levels. Total
traded volumes rose significantly due to increased flows in the SSA space
today. The SEPLLN 23s traded within a 99.70 - 100.20 range.
The bullish sentiments could be
largely attributed to risk off sentiments in US equities consequently fueling
increased fund allocations to EM debt from RM accounts.
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