FX NEWS: The Apex Bank continues to support the market by selling into IEFX window

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Friday, December 18, 2020 / 9:46 AM / By Zedcrest Capital / Header Image Credit: Techeconomy


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FGN Bonds

The FGN bond market started on a sluggish note, but activity picked up by mid-day as local investors began cherry-picking on bonds, especially at the tail of the curve and a few of the mid-dated bonds (2035 paper). Spreads at the long end of the curve (2049s and 2050s papers) opened wide in the earlier hours at 7.70/7.40. Still, they closed with most of the trades settling within the range of 7.57%-7.60% levels. In contrast, most of the mid-dated bills except for the auction paper (2035 maturity) were priced at the 7.10% level throughout the day and met with no demand. Consequently, yields compress on across the benchmark curve by c.5bps on the average of across the curve, closing the day on a slightly positive note.

 

We expect to see more activities in the market tomorrow, as demand will most likely filter in, especially at the tail of the curve, which should be met by an ample supply of bonds.

 

Benchmark FGN Bonds

Description

Bid (%)

Offer (%)

Day Change (%)

 

16.39 27-Jan-22

2.52

0.40

(0.48)

 

12.75 27-Apr-23

3.51

1.51

0.01

 

14.20 14-Mar-24

4.00

1.79

0.00

 

13.53 23-Mar-25

4.50

2.00

(0.50)

 

12.50 22-Jan-26

5.50

4.69

(0.10)

 

16.29 17-Mar-27

5.60

4.80

(0.20)

 

13.98 23-Feb-28

6.00

4.80

(0.10)

 

14.55 26-Apr-29

6.00

4.80

(0.20)

 

12.15 18-Jul-34

7.50

6.55

0.18

 

12.50 27-Mar-35

7.50

6.50

0.15

 

12.40 18-Mar-36

7.50

6.50

0.12

 

16.2499 18-Apr-37

7.50

6.74

0.10

 

9.80 24-Jul-45

7.70

6.60

0.15

 

14.80 26-Apr-49

7.80

7.30

0.17

 

12.98 27-Mar-50

7.80

7.30

0.20

 

 

Treasury Bills

The T-bills bills space continued from its previous muted note, starting and ending the day on a very drab note. We saw few interests for the new 1yr issue. Unfortunately, it met with no supply as the little volume issued by the DMO couldn't fill the demand from interested buyers. By and Largely, both OMO and NTB curve remained unchanged day on day. 

We expect the market to close the week on this drab note, although with small actions, but mostly order-driven demands.

 

Benchmark OMO Bills

Description

Bid (%)

Offer (%)

Day Change (%)

NGOMOB 0 01/05/21

5.00

0.15

0.00

NGOMOB 0 02/02/21

5.00

0.20

0.00

NGOMOB 0 03/02/21

5.00

0.20

0.00

NGOMOB 0 05/11/21

6.00

0.30

0.00

NGOMOB 0 06/08/21

6.50

0.30

0.00

NGOMOB 0 08/10/21

6.50

0.35

0.00

NGOMOB 0 09/07/21

6.50

0.50

0.00

NGOMOB 0 10/19/21

7.00

0.50

0.00



Benchmark NTBills

Description

Bid (%)

Offer (%)

Day Change (%)

NIGTB 0 12/31/20

5.00

0.15

0.00

NIGTB 0 01/14/21

5.00

0.15

0.00

NIGTB 0 02/11/21

5.00

0.20

0.00

NIGTB 0 03/11/21

5.00

0.30

0.00

NIGTB 0 04/29/21

6.00

0.30

0.00

NIGTB 0 05/13/21

6.00

0.30

0.00

NIGTB 0 06/10/21

6.50

0.35

0.00

NIGTB 0 07/01/21

6.50

0.35

0.00

NIGTB 0 08/26/21

6.50

0.35

0.00

NIGTB 0 09/09/21

7.00

0.50

0.00

NIGTB 0 10/14/21

7.00

0.65

0.00


Money Markets

Money market rates increased slightly by c.66bps on the average during today's trading session, as the market remained supported by the positive system liquidity of c. N557.74BN and no funding pressures on local banks. OBB and OVN rates to close the day at 1.00% and 1.25%, respectively.

We expect the rate to inch up tomorrow as outflows from bi-weekly retail intervention, Bond auction funding, and possible CRR debit hit the system.

 

Money Market Rates

 

Current (%)

Previous (%)

Open Buy Back (OBB)

1.00

0.67

Overnight (O/N)

1.25

0.92

 

 

FX Market

The Naira traded on a solemn note in today's trading session, as the IEFX closing rate posted at 0.17% gain in value to close at N394.00/$ amidst shallow traded volumes.

However, all other market segments remained unchanged, with the cash and transfer market closing the day at N475/$ and N490/$, respectively.

 

FX Market

Current (N/$)

Previous (N/$)

CBN Spot

379.00

379.00

CBN SMIS

380.69

380.69

I&E FX Window

394.00

394.67

Cash Market

475.00

475.00

Transfer Market

490.00

490.00

 

Eurobonds

The NIGERIA Sovereign tickers continued on their slow notes, as yields compressed by c.2bps D/D. The long-dated papers were the most demanded (2047s and 2049s), triggered by a slight increase in local participants' activities.

 

The NIGERIA Corps tickers were reasonably quiet, except for ACCESS 21s, which saw sustained demand interest and strengthened by c.93bps on yield.


Proshare Nigeria Pvt. Ltd.



Proshare Nigeria Pvt. Ltd.



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