Bonds & Fixed Income | |
Bonds & Fixed Income | |
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Friday, March 13, 2020 / 7:38 AM / By Zedcrest Capital / Header Image Credit: The Tokenist
FGN Bonds
The Bonds
Market maintained its bearish trend, as offers continued to improve across the
bond curve. The significant drop, to already depressed crude oil prices fueled
more sell-off by market players, especially on the mid-(2029s) to long-end (2049s) of the curve. Yields
expanded by an average of c.76bps across the benchmark bond curve.
We still
expect a bearish market in tomorrow's session, as market players look for more
selling opportunities to exit their positions.
Benchmark FGN Bonds |
||||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
|
14.50 15-Jul-21 |
8.79 |
6.52 |
(4.00) |
|
16.39 27-Jan-22 |
13.85 |
6.55 |
1.48 |
|
12.75 27-Apr-23 |
13.95 |
9.52 |
1.21 |
|
14.20 14-Mar-24 |
14.03 |
10.16 |
1.77 |
|
13.53 23-Mar-25 |
13.95 |
11.24 |
1.25 |
|
12.50 22-Jan-26 |
13.97 |
12.13 |
0.98 |
|
16.29 17-Mar-27 |
13.96 |
12.69 |
1.19 |
|
13.98 23-Feb-28 |
13.97 |
12.81 |
1.20 |
|
12.15 18-Jul-34 |
13.76 |
12.27 |
0.56 |
|
12.40 18-Mar-36 |
14.00 |
12.22 |
1.24 |
|
16.2499 18-Apr-37 |
14.00 |
12.18 |
1.15 |
|
14.80 26-Apr-49 |
14.06 |
12.06 |
1.18 |
|
Treasury Bills
The Treasury
Bills market traded on a bearish note, with offers improving significantly
across the OMO curve. Despite the CBN not floating an OMO auction,
sell-interest still persisted, especially on long-end OMO maturities (Jan/Feb),
as supply was unrelenting from Offshore Investors. Yields expanded by an
average of c.47bps across the benchmark OMO curve.
Contrastingly,
The NTB side traded on a bullish note, especially on the newly issued 364-DTM
at yesterday's T-bills PMA. Yields compressed by an average of c.49bps across
the benchmark NTB curve.
We expect the bearish trend to persist in tomorrow's session, as Foreign Portfolio Investors continue to sell-off at the mid- to long-end of the OMO curve.
Benchmark
OMO Bills |
|||
Description |
Bid (%) |
Offer
(%) |
Day
Change (%) |
NGOMO 19-Mar-20 |
17.50 |
11.00 |
0.50 |
NGOMO 2-Apr-20 |
17.35 |
16.75 |
0.55 |
NGOMO 14-May-20 |
17.50 |
13.00 |
0.50 |
NGOMO 4-Jun-20 |
17.50 |
13.00 |
0.55 |
NGOMO 2-Jul-20 |
17.50 |
13.00 |
0.60 |
NGOMO 13-Aug-20 |
17.50 |
13.00 |
0.50 |
NGOMO 3-Sep-20 |
17.50 |
13.00 |
0.50 |
NGOMO 1-Oct-20 |
17.50 |
13.00 |
0.60 |
NGOMO 3-Nov-20 |
17.00 |
13.00 |
0.00
|
NGOMO 1-Dec-20 |
17.00 |
13.00 |
0.00
|
NGOMO 5-Jan-21 |
17.00 |
16.00 |
1.25 |
NGOMO 02-Feb-21 |
17.00 |
13.00 |
0.10 |
Benchmark
NTBills |
|||
Description |
Bid (%) |
Offer
(%) |
Day
Change (%) |
NIGTB 2-Apr-20 |
3.00 |
1.00 |
(1.00) |
NIGTB 2-Jul-20 |
4.00 |
1.00 |
(0.50) |
NIGTB 1-Oct-20 |
4.50 |
1.00 |
(0.50) |
NIGTB 12-Nov-20 |
5.00 |
1.00 |
(0.25) |
NIGTB 14-Jan-21 |
5.50 |
3.50 |
(0.20) |
NIGTB 11-Feb-21 |
5.50 |
2.00 |
(0.50) |
Money Market
Takers
breathed a sigh of relief, as interbank rates plunged by c.900bps, bolstered by
FX retail refund of c.N200bn impacting system liquidity. OBB and OVN rates closed
significantly lower at 3.29% and 4.00% respectively.
We anticipate
rates to spike in tomorrow's session, as FX retail Debit is expected to hits
banks.
Money Market Rates |
||
|
Current (%) |
Previous (%) |
Open Buy Back
(OBB) |
3.29 |
12.83 |
Overnight (O/N) |
4.00 |
13.83 |
FX Market
At the Interbank,
the Naira/USD spot and SMIS rate remained unchanged at N306.95/$ and N358.51/$.
While at the I&E FX window, the Naira depreciated significantly against the
Greenback by N5.67k to close at N374.00/$.
At the
parallel market, cash and transfer rate depreciated significantly by N2 and N7
to close at N380.00/$ and N387.00/$ respectively.
FX Market |
||
Current (N/$) |
Previous ( N/$) |
|
CBN Spot |
306.95 |
306.95 |
CBN SMIS |
358.51 |
358.51 |
I&E FX
Window |
374.00 |
368.33 |
Cash Market |
380.00 |
378.00 |
Transfer Market |
387.00 |
380.00 |
Eurobond
The NGERIA
Sovereign maintained its bearish course in today's session, as yields continued
to expand across the sovereign yield curve. With oil prices plunging by c.8.66%
D/D, yields weakened further as investors continued to exit their positions. Yields
spiked by an average of c167bps across the benchmark sovereign curve.
The NGERIA
Corps tickers traded on a mixed note, as yields on the ACCESS 2021s, ZENITH
2022s and FIDBAN 2022s, all dipped by c.1bps apiece, while SEPLLN 2023s spiked
significantly by c.87bps among most tracked papers.
Related News
1. Axxela Funding 1
Plc - Up to N10bn Series 1 Bonds Issuance Coming Soon
2. Bearish Sentiment
Persists in the Fixed Income Space, as DMO Drops Rates at the T-Bills PMA
3. DMO Revises Bond
Auction Calendar, Issues New 15-year (2035s) and 50-year Bond (2050s)
Maturities
4. FCMB Announces
Issuance of Commercial Paper of up to N20bn by First City Monument Bank Limited
5.
NSE Lists FGN
Savings Bond Issued in February 2020
6.
Average Yield
Dips Marginally to 4.0% WoW Buoyed by Improved System Liquidity
7.
Interbank Rates
Drop Significantly as CRR Credit of c.N200bn Hits Banks
8.
OMO Auction: CBN
Sells N110.51bn at the 362-DTM Only Dropping Rates by 1bp to 12.99%
9.
Sell-off in the
T-bills Market as Yields Continue to Retrace Across the OMO Curve
10.
First City
Monument Bank Limited Issue of up to N20bn Series 1 Commercial Paper Now Open