| Bonds & Fixed Income |    1002 VIEWS  |
| Bonds & Fixed Income | |
| 1002 VIEWS | |
 |
Thursday, March 26, 2020 / 7:42 AM / By Zedcrest Capital / Header Image Credit: MoneyMarket
Below are highlights of trading activities in the fixed income and forex market on March 26, 2020
FGN Bonds
The Bonds Markets traded on a quiet note, as axes were few and
far between across the curve. We saw very few order-driven demand on the
mid-end (2028s), as market players traded cautiously ahead of today's Bond PMA
outcome. Yields compressed by an average of c.11bps across the benchmark bond
curve.
We still expect the market players to tread cautiously, as
attention shifts to tomorrow's bond PMA.
|
Benchmark FGN Bonds |
||||
|
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
|
|
14.50 15-Jul-21 |
7.89 |
5.60 |
0.03 |
|
|
16.39 27-Jan-22 |
8.01 |
6.15 |
(1.11) |
|
|
12.75 27-Apr-23 |
12.14 |
10.81 |
0.20 |
|
|
14.20 14-Mar-24 |
12.88 |
11.03 |
(0.47) |
|
|
13.53 23-Mar-25 |
12.97 |
10.88 |
(0.14) |
|
|
12.50 22-Jan-26 |
12.74 |
12.18 |
(0.25) |
|
|
16.29 17-Mar-27 |
13.26 |
12.26 |
0.05 |
|
|
13.98 23-Feb-28 |
13.23 |
12.75 |
0.02 |
|
|
14.55 26-Apr-29 |
13.29 |
12.49 |
0.09 |
|
|
12.15 18-Jul-34 |
13.20 |
12.42 |
0.00 |
|
|
12.40 18-Mar-36 |
13.23 |
12.33 |
0.03 |
|
|
16.2499 18-Apr-37 |
13.21 |
12.64 |
0.01 |
|
|
14.80 26-Apr-49 |
13.42 |
13.00 |
0.06 |
|
Treasury Bills
The
Treasury Bills market continued on its quiet trend, as client-driven sentiment
on OMO bills persisted. Market players still swamped the mid-end of the OMO
curve, as yields remained attractive. We saw some slight client demand on the
short-end of the curve but with very few deals consummated. Yields remained
unchanged across the benchmark OMO curve.
The NTB
side traded on a flat note, as we saw slight demand was seen at the mid-end of
the NTB curve. Yields dropped by an average of c.171bps across the benchmark
NTB curve.
We expect
to see more client-driven demand on the mid-end of the OMO curve, as yields
seem attractive to market players.
|
Benchmark
OMO Bills |
|||
|
Description |
Bid (%) |
Offer
(%) |
Day
Change (%) |
|
NGOMO 2-Apr-20 |
18.00 |
9.00 |
1.00 |
|
NGOMO 14-May-20 |
13.50 |
11.00 |
(4.00) |
|
NGOMO 4-Jun-20 |
17.50 |
10.00 |
0.00
|
|
NGOMO 2-Jul-20 |
18.00 |
11.00 |
0.50 |
|
NGOMO 13-Aug-20 |
18.00 |
11.00 |
0.50 |
|
NGOMO 3-Sep-20 |
18.00 |
14.50 |
0.50 |
|
NGOMO 1-Oct-20 |
18.00 |
11.00 |
1.00 |
|
NGOMO 3-Nov-20 |
18.00 |
11.00 |
0.50 |
|
NGOMO 1-Dec-20 |
18.00 |
12.50 |
0.50 |
|
NGOMO 5-Jan-21 |
17.50 |
12.00 |
0.00
|
|
NGOMO 02-Feb-21 |
17.00 |
10.00 |
(0.50) |
|
Benchmark
NTBills |
|||
|
Description |
Bid (%) |
Offer
(%) |
Day Change
(%) |
|
NIGTB 2-Apr-20 |
3.25 |
1.00 |
(0.25) |
|
NIGTB 2-Jul-20 |
3.50 |
1.00 |
(1.00) |
|
NIGTB 1-Oct-20 |
4.50 |
1.00 |
(1.50) |
|
NIGTB 12-Nov-20 |
4.50 |
1.00 |
(2.50) |
|
NIGTB 14-Jan-21 |
4.50 |
3.00 |
(2.50) |
|
NIGTB 11-Feb-21 |
4.50 |
2.00 |
(2.50) |
Money Market
System Liquidity opened with N576.17bn
positive, as FAAC inflows further bolstered an already buoyant system. OBB and
OVN rates dipped by c.140bps to close the day lower at 3.00% and 3.50%
respectively.
We expect rates to remain depressed as OMO maturities of c.N75bn further boosts an already buoyant system liquidity.
|
Money Market Rates |
||
|
|
Current (%) |
Previous (%) |
|
Open Buy Back
(OBB) |
3.00 |
4.83 |
|
Overnight (O/N) |
3.50 |
5.25 |
FX Market
At the interbank, the Naira/USD spot and SMIS rates remained
unchanged D/D at N361.00/$ and N358.51/$ respectively. At the I&E FX
window, the Naira further appreciated against the dollar by 28k to close at N380.25/$.
At the parallel market, cash and transfer rates were
unchanged at N396.00/$, and N410.00/$ respectively.
|
FX Market |
||
|
Current (N/$) |
Previous ( N/$) |
|
|
CBN Spot |
361.00 |
361.00 |
|
CBN SMIS |
358.51 |
358.51 |
|
I&E FX
Window |
380.25 |
380.53 |
|
Cash Market |
396.00 |
396.00 |
|
Transfer Market |
410.00 |
410.00 |
Eurobond
Yields in the NGERIA Sovereign market, recovered slightly D/D, as we saw
demand across the curve. Despite Nigeria's government cut in crude oil prices
to clear out the glut in cargoes, benchmark oil prices improved D/D by c.6.97%
to clear at $29.91 per barrel. Yields compressed by c.35bps across the
sovereign curve.
The NGERIA Corps tickers traded on a quiet note,
as yields remained relatively unchanged D/D among most tracked papers, with
only the ETINL 2024s having a significant move, weakening by c.6.41% to close
the day.
1. ACCESS Publishes
2020 Green Bond Impact Report
2. Somber Day in
the Fixed Income Space as the MPC Maintains Rates across All Boards
3. Quiet Bond
Market as COVID-19 Fears Creates Uncertainty Among Investors
4. DANGCEM Notifies
of Intention To Issue Maiden Bonds
5. Average NT-Bills
Yield Rises to 4.0% Amidst Mixed Investors' Sentiments; UCAP Plc CP Available
6. CBN Responds to
Global Economic Conditions; Depreciates Naira
7. Yields Continue
to Recover, as the CBN Records a NO SALE at the OMO Auction
8. Rates At T-Bills
Primary Auction Closes Lower, Despite Low Crude Oil Prices
9. Invest in FGN
Monthly Bond Auction - March 2020
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