| Bonds & Fixed Income |    3405 VIEWS  |
| Bonds & Fixed Income | |
| 3405 VIEWS | |
 |
Wednesday, February
7, 2018, 8.00AM/Zedcrest Capital
*** Oil prices fall more than 1 percent amid global market rout***
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 |
$66.71pb |
Fell by 2.34% from $68.37pb on 5th February 2018 |
Bonds
|
Benchmark FGN Bond Yields |
|||
|
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
|
16.00 29-Jun-19 |
14.20 |
14.13 |
0.28 |
|
15.54 13-Feb-20 |
13.92 |
13.85 |
0.28 |
|
14.50 15-Jul-21 |
13.93 |
13.86 |
0.56 |
|
16.39 27-Jan-22 |
13.66 |
13.59 |
0.44 |
|
14.20 14-Mar-24 |
13.72 |
13.65 |
0.23 |
|
12.50 22-Jan-26 |
14.09 |
14.02 |
0.60 |
|
16.29 17-Mar-27 |
13.76 |
13.69 |
0.22 |
|
12.15 18-Jul-34 |
13.86 |
13.79 |
0.36 |
|
12.40 18-Mar-36 |
13.78 |
13.71 |
0.37 |
|
16.25 18-Apr-37 |
13.78 |
13.71 |
0.37 |
Source:
Zedcrest Dealing Desk
Treasury Bills
The T-bills market also traded on
bearish note with some selloff witnessed especially on the short tenured bills
due to the squeeze in market liquidity which is estimated to close today on a
marginally positive note. Average T-bill Yields consequently rose by c.33bps,
even as the CBN sold N21bn of the 191-day OMO bill offered, at 14.40%. We
expect slight retracements in yields as market players anticipate inflows from
OMO maturities on Thursday.
|
Benchmark Treasury Bills Rates |
|||
|
Description |
Bid
(%) |
Offer
(%) |
Day
Change (%) |
|
1-Mar-18 |
14.40 |
14.25 |
1.90 |
|
5-Apr-18 |
15.00 |
14.85 |
1.45 |
|
3-May-18 |
13.85 |
13.70 |
0.45 |
|
14-Jun-18 |
14.60 |
14.45 |
0.30 |
|
5-Jul-18 |
14.05 |
13.90 |
0.00 |
|
2-Aug-18 |
14.20 |
13.45 |
0.60 |
|
20-Sep-18 |
14.50 |
14.35 |
0.30 |
|
4-Oct-18 |
14.40 |
14.25 |
0.10 |
|
1-Nov-18 |
14.40 |
14.25 |
0.50 |
|
3-Jan-19 |
13.90 |
13.75 |
0.10 |
Source: Zedcrest Dealing Desk
Money Market
The OBB and OVN rates spiked to
35.80% and 37.42% as the CBN mandated banks with balances at the SLF window to
fund their positions or risk having their bills rediscounted. This put further
pressure on market which opened at just c.N20bn positive. We expect rates to be
relatively stable at these levels tomorrow, as there are no significant
liquidity inflows expected until Thursday.
|
Money Market Rates |
||
|
|
Current (%) |
Previous (%) |
|
Open Buy Back (OBB) |
35.80 |
18.40 |
|
Overnight (O/N) |
37.42 |
19.33 |
Source: FMDQ, Zedcrest Research
FX Market
The CBN Official spot rate remained stable at
its previous day rate of N305.80/$, with external reserves recorded to have
improved by 1.74% to $40.79bn as at 2nd of February, 2018.
The spot rate in
the Investors and Exporters’ FX Window
depreciated marginally by 0.02% to close at N360.31/$ from N360.25/$.
Rates in the Unofficial market remained stable at
N361.60/$
|
FX
Rates |
||
|
|
Current (N/$) |
Previous ( N/$) |
|
CBN Spot |
305.80 |
305.80 |
|
CBN SMIS |
330.00 |
330.00 |
|
I&E FX Window |
360.31 |
360.25 |
|
Parallel Market |
361.60 |
361.60 |
Related News
1.
Bond
Yields Rise on Weak Local Demand and Slight Offshore Sell
2.
DMO
issues 2 and 3 year Savings Bonds at 10.277% and 11.277% respectively
3.
Nigeria’s
Re-Inclusion to the JP Morgan Index, How Feasible?
4.
CBN
sells N215bn OMO T-bills to Mop up Excess Liquidity Inflows
5.
CBN
sells N253bn T-bills at c.10bps lower than previous Auction Rate
6.
FGN
Domestic Debt Service Payment Increased In Line With The Stock of Domestic Debt
7. Naira Depreciates slightly despite $210m FX intervention by the CBN
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