Bonds & Fixed Income | |
Bonds & Fixed Income | |
9435 VIEWS | |
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KEY
INDICATORS
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 |
$68.65pb |
Fell by 0.28% from $68.83pb on 21 March 2018 |
Bonds
FGN Bonds |
|||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
16.00 29-Jun-19 |
13.63 |
13.56 |
0.12 |
15.54 13-Feb-20 |
13.53 |
13.46 |
0.17 |
14.50 15-Jul-21 |
13.55 |
13.48 |
0.11 |
16.39 27-Jan-22 |
13.46 |
13.39 |
0.02 |
14.20 14-Mar-24 |
13.51 |
13.44 |
0.02 |
12.50 22-Jan-26 |
13.57 |
13.50 |
0.05 |
16.29 17-Mar-27 |
13.57 |
13.50 |
0.02 |
12.15 18-Jul-34 |
13.53 |
13.46 |
0.01 |
12.40 18-Mar-36 |
13.41 |
13.34 |
0.05 |
16.25 18-Apr-37 |
13.34 |
13.27 |
0.03 |
Source: Zedcrest Dealing Desk
Treasury Bills
The T-bills market traded on a
slightly bullish note, with demand especially on the April and Nov maturities.
This came as the CBN did not conduct an OMO auction, despite the significant
inflows of c.N208bn from OMO and Net PMA repayments. We expect yields to close
the week on a relatively calm note, as market players largely expect a
resumption in OMO auctions in the coming week.
Treasury
Bills |
|||
Description |
Bid
(%) |
Offer
(%) |
Day
Change (%) |
12-Apr-18 |
13.75 |
13.60 |
(0.10) |
3-May-18 |
14.35 |
14.20 |
0.00 |
14-Jun-18 |
14.15 |
14.00 |
0.10 |
5-Jul-18 |
14.20 |
14.05 |
0.00 |
2-Aug-18 |
14.05 |
13.45 |
0.00 |
13-Sep-18 |
14.05 |
13.90 |
0.00 |
4-Oct-18 |
14.20 |
14.05 |
0.00 |
1-Nov-18 |
14.35 |
14.20 |
(0.05) |
3-Jan-19 |
13.35 |
13.20 |
(0.10) |
14-Feb-19 |
13.25 |
13.10 |
0.00 |
Source: Zedcrest Dealing Desk
The OBB and OVN rates crashed to
6.83% and 8.08% respectively, on the backdrop of inflows from OMO and PMA
repayments which bolstered system liquidity to c.N325bn positive. We expect
rates to close the week on a relatively calm note, due to the relatively
boisterous system liquidity. This is however barring a significant OMO sale by
the CBN.
Money
Market Rates |
||
|
Current
(%) |
Previous
(%) |
Open Buy Back (OBB) |
6.83 |
20.00 |
Overnight (O/N) |
8.08 |
22.08 |
Source: FMDQ, Zedcrest Researc
FX Market
The Interbank rate remained stable at its
previous rate of N305.70/$, with the CBN’s external reserves recorded to have
improved by 1.54% to $45.36bn as of 21 March. The NAFEX rate appreciated
by 0.05% to N360.12/$, with total volume traded dropping by 55% to $156m. Rates
in the Unofficial market also appreciated strongly by 0.17% to
N361.10/$, due to renewed supply of the greenback in that segment of the
market.
FX Rates |
||
|
Current
(N/$) |
Previous
( N/$) |
CBN Spot |
305.70 |
305.70 |
CBN SMIS |
330.00 |
330.00 |
I&E FX Window |
360.12 |
360.29 |
Parallel Market |
361.10 |
361.70 |
Eurobonds
Yields in the NGERIA Sovereign space
declined by c.6bps, in a gradual recovery from the sell offs witnessed in the
previous sessions prior to the FOMC’s interest rate decision. We witnessed most
trades on the 2038 and 2047 bonds as market players hunted for the relatively
higher yields on the long end of the curve (27s - 47s). We expect this trend to persist, with yields
still expected to decline slightly to their pre-selloff levels.
The Nigerian Banks were
also slightly bullish on most tickers, except for continued bearish pressures
witnessed on the 2022s (Zenith, UBANNL and FIDBAN). Investors were also
slightly bearish on the Access 21s sub, while there were almost only bids for
the ECOTRA 21s. The SEPLLN 23 is still trading close to par.
Contact us:
Dealing Desk: 01-6311667 Dayo: 07032208237 Seyi: 08023231396 Nnamdi:+2348133385000 Email: research@zedcrestcapital.com
Disclaimer:
Whilst proper and
reasonable care has been taken in the preparation and accuracy of the facts and
figures presented in this report, no responsibility or liability is accepted by
Zedcrest Capital or its employees for any error, omission or opinion expressed
herein. This report is not an investment research or a research recommendation
and should not be regarded as such. The information provided herein is by no
means intended to provide a sufficient basis on which to make an investment
decision