| Bonds & Fixed Income |    4107 VIEWS  |
| Bonds & Fixed Income | |
| 4107 VIEWS | |
 |
Friday, January 04, 2018/ 06:18AM / Zedcrest Capital
*** Nigeria
generates N808bn from VAT in 9 months*** – NBS
KEY
INDICATORS
|
Indicator |
Value |
Commentary |
|
Inflation |
11.28% |
As at December 14, 2018. A c.2bps increase from 11.26% recorded
in October 2018 |
|
MPR |
14.00% |
Left Unchanged for the 12th Consecutive Time at the
Nov. 22, 2018 MPC Meeting |
|
External Reserves |
$43.07bn |
As at January 2, 2018. A c.0.07% decrease from $43.12bn on
December 31, 2018 |
|
Brent Crude |
$55.47pb |
As at January 3, 2019. A c.0.00% decrease from $55.51pb on January 2, 2018 |
Bonds
The
Bond Market compressed marginally by c.3bps in today’s session, following
slight interests on the 26s, 27s and 37s. Yields however remained much
unchanged on other maturities.
We
expect the market to close the week on a relatively quiet note, with an outlook
for relatively higher yield levels in the coming week.
|
Benchmark
FGN Bonds |
|||
|
Description |
Bid (%) |
Offer (%) |
Day Change
(%) |
|
15.54 13-Feb-20 |
15.24 |
14.73 |
(0.05) |
|
14.50 15-Jul-21 |
15.73 |
15.43 |
0.01 |
|
16.39 27-Jan-22 |
15.12 |
14.77 |
0.00 |
|
14.20 14-Mar-24 |
15.17 |
14.95 |
0.00 |
|
12.50 22-Jan-26 |
15.68 |
15.63 |
(0.07) |
|
16.29 17-Mar-27 |
15.59 |
15.51 |
(0.04) |
|
13.98 23-Feb-28 |
15.69 |
15.54 |
0.00 |
|
12.15 18-Jul-34 |
15.64 |
15.40 |
(0.01) |
|
12.40 18-Mar-36 |
15.69 |
15.42 |
(0.01) |
|
16.2499 18-Apr-37 |
15.49 |
15.38 |
(0.08) |
Source: Zedcrest Dealing
Desk
Treasury
Bills
The
T-bills market traded on a bearish note with yields rising by c.12bps on
average, following sell pressures on the shorter end of the curve in the wake
of the OMO auction (c.425bn) by the CBN.
We expect
the market to remain bearish tomorrow, as market players would be looking to
provide funding for a retail FX intervention sale by the CBN.
|
|
|||
|
Description |
Bid (%) |
Offer (%) |
Day Change
(%) |
|
14-Feb-19 |
15.50 |
13.00 |
0.00 |
|
14-Mar-19 |
17.00 |
14.50 |
0.00 |
|
4-Apr-19 |
13.50 |
11.00 |
0.00 |
|
2-May-19 |
13.00 |
12.50 |
0.00 |
|
13-Jun-19 |
13.50 |
12.50 |
0.00 |
|
18-Jul-19 |
14.00 |
13.00 |
0.00 |
|
1-Aug-19 |
14.50 |
14.00 |
0.00 |
|
12-Sep-19 |
15.00 |
14.00 |
0.00 |
|
3-Oct-19 |
15.00 |
14.00 |
0.00 |
|
14-Nov-19 |
14.90 |
14.60 |
0.00 |
|
5-Dec-19 |
15.05 |
14.90 |
0.00 |
Source: Zedcrest Dealing Desk
Money
Market
Rates in the
money market declined by c.4pct, with the OBB and OVN rates closing the day at
14.08% and 14.92%, as inflows from Net OMO and PMA repayments (c.N265bn)
bolstered system liquidity to c.N385bn est. from c.N120bn opening the day.
Rates are
expected to trend higher tomorrow, as the CBN is expected to debit banks for a
retail FX interventions sale which estimated to mop up most of the available
system liquidity.
|
Money Market Rates |
||
|
|
Current (%) |
Previous (%) |
|
Open Buy Back (OBB) |
14.08 |
18.33 |
|
Overnight (O/N) |
14.92 |
19.42 |
Source: FMDQ, Zedcrest Research
FX Market
At the Interbank, the Naira/USD rate
remained unchanged at N306.95/$ (spot) and N358.13/$ (SMIS), while the NAFEX rate
in the I&E window depreciated further by c.0.24% to N365.30/$ from N364.41/$
previously. At the parallel market, the cash rate depreciated slightly by c.0.06%
to N359.00/$, while the transfer rate remained unchanged at N364.00/$.
|
FX Market |
||
|
|
Current (N/$) |
Previous ( N/$) |
|
CBN Spot |
306.95 |
306.95 |
|
CBN SMIS |
358.31 |
358.31 |
|
I&E FX Window |
365.30 |
364.41 |
|
Cash Market |
359.00 |
358.80 |
|
Transfer Market |
364.00 |
364.00 |
Source: CBN, FMDQ, REXEL
BDC
Eurobonds
The NGERIA Sovereigns were flat except for
slight interests seen on the 2047s and 2049s.
In the NGERIA Corps, investors slightly bullish
on the DIAMBK 19s, Access 21 and FBNNL 21s, whilst we witnessed slight selloff
on the FIDBAN 22s.
Related News
1. Bond Yields
Retrace Sharply, As DMO Resumes NTB Auction Sales
2. Despite Year End Funding Pressures, CBN Maintains OMO and
FX Interventions
3. Naira Crashes Below N360 Per Dollar at the Parallel Market
as External Reserves Resume Downtrend
4. Demand Pressures Force c.50bps Rally on 2024 FGN Bond
5. Money Market
Rate Decreased As Overnight Rate Fell to 25.08%
6. Markets Close on a Quiet Note as Tight System Liquidity
pushes Funding Rates Higher
7. Investors Look To Secondary Market To Fill Unmet Demand At
Previous Day’s Auction
8. Summary of December 2018 FGN Bond Auction Results
9. DMO’s Weak Borrowing Appetite Forces 10-yr Auction Rate
33bps Lower
10. DMO to offer N70bn FGN Bonds tomorrow as N100bn FGN Sukkuk
Bond Offer Closes
11. Diamond Bank Eurobond Rallies 800bps Following Merger
Announcement
12. Average Yields on Long Term Bills Remain at Over 17.0% on
Aggressive OMO Mop Ups
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