Bonds & Fixed Income | |
Bonds & Fixed Income | |
3945 VIEWS | |
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KEY INDICATORS
Inflation |
15.37% |
Declined by 0.54% in December from 15.90% in November 2017 |
MPR |
14.00% |
Left unchanged at 14.00% at the MPC meeting of November 2017 |
External Reserves |
$40.79billion |
Accreted 1.74% as at 2nd February from $40.75 as at 1st February 2018 |
Brent Crude |
$68.37pb |
Fell by 0.39% from $68.64pb on 2nd February 2018 |
Benchmark FGN Bond Yields |
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Description |
Bid (%) |
Offer (%) |
Day Change (%) |
16.00 29-Jun-19 |
13.92 |
13.85 |
0.07 |
15.54 13-Feb-20 |
13.64 |
13.57 |
0.06 |
14.50 15-Jul-21 |
13.37 |
13.30 |
0.03 |
16.39 27-Jan-22 |
13.22 |
13.15 |
0.10 |
14.20 14-Mar-24 |
13.49 |
13.42 |
0.04 |
12.50 22-Jan-26 |
13.49 |
13.42 |
0.07 |
16.29 17-Mar-27 |
13.54 |
13.47 |
0.06 |
12.15 18-Jul-34 |
13.50 |
13.43 |
0.07 |
12.40 18-Mar-36 |
13.41 |
13.34 |
0.05 |
16.25 18-Apr-37 |
13.41 |
13.34 |
0.10 |
Source: Zedcrest Dealing Desk
Treasury Bills
The T-bills market traded on a relatively quiet note, with slight buys observed on some short tenured bills. The Medium to long end of the curve however traded on a relatively flat note, as the CBN resumed its OMO auction, selling a total c.N116bn of the 98– and 266-day bills, with rates maintained at 12.60% and 14.40% respectively. We expect this flattish trend to persist, as the CBN is expected to continue with its OMO issuance.
Benchmark Treasury Bills Rates |
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Description |
Bid (%) |
Offer (%) |
Day Change (%) |
1-Mar-18 |
12.50 |
12.35 |
(0.10) |
5-Apr-18 |
13.55 |
13.40 |
0.00 |
3-May-18 |
13.40 |
13.25 |
0.25 |
14-Jun-18 |
14.30 |
14.15 |
0.00 |
5-Jul-18 |
14.05 |
13.90 |
0.00 |
2-Aug-18 |
13.60 |
13.45 |
0.00 |
20-Sep-18 |
14.20 |
14.05 |
0.00 |
4-Oct-18 |
14.30 |
14.15 |
(0.05) |
1-Nov-18 |
13.90 |
13.75 |
0.00 |
3-Jan-19 |
13.80 |
13.65 |
0.10 |
Source: Zedcrest Dealing Desk
Money Market
The OBB and OVN rates jumped higher to 18.40% and 19.33%, following debits for the OMO and wholesale FX sales by the CBN. System Liquidity is consequently estimated to close on a marginally negative note. We expect rates to however moderate slightly tomorrow, as there are no expected significant funding pressures on the banks
Money Market Rates |
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|
Current (%) |
Previous (%) |
Open Buy Back (OBB) |
18.40 |
11.60 |
Overnight (O/N) |
19.33 |
12.17 |
FX Rates |
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|
Current (N/$) |
Previous ( N/$) |
CBN Spot |
305.80 |
305.75 |
CBN SMIS |
330.00 |
330.00 |
I&E FX Window |
360.25 |
360.70 |
Parallel Market |
361.60 |
361.60 |
1. DMO issues 2 and 3 year Savings Bonds at 10.277% and 11.277% respectively
2. Nigeria’s Re-Inclusion to the JP Morgan Index, How Feasible?
3. CBN sells N215bn OMO T-bills to Mop up Excess Liquidity Inflows
4. CBN sells N253bn T-bills at c.10bps lower than previous Auction Rate
5. FGN Domestic Debt Service Payment Increased In Line With The Stock of Domestic Debt
6. Naira Depreciates slightly despite $210m FX intervention by the CBN
7. Decent Start to the Year for the DMO