Bonds & Fixed Income | |
Bonds & Fixed Income | |
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Wednesday, October 09,
2019 / 08:00 AM / By Zedcrest Capital / Header Image Credit: Pixabay
Activity in the T-bills market remained bullish, as yields further nose-dived by c.25bps across all tenors. Short end maturities went as low as 10.75%, while on the long-end, yield were as low as 12.8% at close of trading. There's a sentiment among market players that CBN wants rates to be at these low positons, so as to reduce cost of fund on interest repayments. Market still remains very liquid, which also has a direct effect on the bullish trend noticed in the last couple of days.
Below are
highlights of trading activities in the fixed income and forex market today
Bonds
The Bond market was active today, as we noticed improved bids across all maturities but noticed very little trades done. We also noted significant activity on the 2030s and 2040s.
We still expect
the same to persist tomorrow as investors remain cautious.
Benchmark FGN Bonds |
|||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
14.50 15-Jul-21 |
14.33 |
13.54 |
0.00 |
16.39 27-Jan-22 |
14.17 |
13.74 |
0.00 |
12.75 27-Apr-23 |
14.38 |
14.30 |
0.01 |
14.20 14-Mar-24 |
14.18 |
13.74 |
0.00 |
13.53 23-Mar-25 |
14.20 |
14.06 |
(0.04) |
12.50 22-Jan-26 |
14.26 |
14.11 |
0.03 |
16.29 17-Mar-27 |
14.28 |
14.09 |
0.01 |
13.98 23-Feb-28 |
14.34 |
14.25 |
(0.02) |
12.15 18-Jul-34 |
14.51 |
14.35 |
0.00 |
12.40 18-Mar-36 |
14.51 |
14.35 |
0.01 |
16.2499 18-Apr-37 |
14.60 |
14.32 |
0.00 |
14.80 26-Apr-49 |
14.66 |
14.61 |
0.00 |
Treasury Bills
Activity in the
T-bills market remained bullish, as yields further nose-dived by c.25bps across
all tenors.
We still expect
market to be bullish and yields trend lower at the advent of CBN not issuing
OMO
Benchmark Treasury Bills |
|||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
14-Nov-19 |
12.25 |
11.25 |
(0.35) |
5-Dec-19 |
12.25 |
11.25 |
(0.55) |
2-Jan-20 |
12.60 |
11.65 |
0.50 |
6-Feb-20 |
12.60 |
11.80 |
(0.20) |
19-Mar-20 |
12.20 |
11.50 |
(0.60) |
2-Apr-20 |
12.25 |
11.50 |
(0.55) |
14-May-20 |
12.20 |
12.10 |
(0.90) |
04-Jun-20 |
13.00 |
11.00 |
0.00 |
02-Jul-20 |
12.75 |
12.26 |
(0.20) |
13-Aug-20 |
12.75 |
12.26 |
(0.35) |
3-Sep-20 |
13.20 |
12.50 |
0.00 |
1-Oct-20 |
13.20 |
12.50 |
0.00 |
Source:
Zedcrest Dealing Desk
Money
Market
Money market rates slightly dipped from yesterday by an average of c.50bps from last week. Market rates remain very low as the system is still awash with liquidity. OBB and OVN rates closed today at 3.07% and 3.79% respectively.
We
expect money market rates to still remain at these levels barring any CBN
mop-up.
Money Market Rates |
||
|
Current (%) |
Previous (%) |
Open
Buy Back (OBB) |
3.07 |
4.00 |
Overnight (O/N) |
3.79 |
4.79 |
Source: FMDQ, Zedcrest
FX Market
At
the interbank, the Naira/USD spot rate remained stable at N307.00/$ while the
SMIS rates remained stable at N358.13/$. At the I&E window, the closing
rate for the Naira further increased by 8k to close the day at N362.45/$.
The
cash and transfer rates at the parallel markets also saw no change, closing at
N357.80/$ and N362.50/$ respectively.
FX Market |
||
|
Current (N/$) |
Previous ( N/$) |
CBN
Spot |
307.00 |
307.00 |
CBN
SMIS |
358.13 |
358.13 |
I&E
FX Window |
362.45 |
362.37 |
Cash
Market |
357.80 |
357.80 |
Transfer
Market |
362.50 |
362.50 |
Source: CBN, FMDQ, REXEL BDC
Eurobonds
Trading activity
in the NGERIA Sovereigns and Corps papers was significant. We had
improved demand by investors for the second day
running on some corp papers.
We still expect significant demand in some local corp papers
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