Bonds & Fixed Income | |
Bonds & Fixed Income | |
977 VIEWS | |
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Thursday, February 27,
2020 / 09:48 AM / By Zedcrest Capital / Header Image Credit: Missybanker
FGN Bonds
The
Bond Market traded on a quiet note, with bullish sentiment seen across the bond
curve. We saw the most volumes on the mid-tenured maturities (2028s and 2029s)
as local investors scrambled to reinvest tomorrow's maturities at attractive
yields. Yields dipped by c.1bp across the benchmark bond curve.
We
expect a bullish market in tomorrow's session, supported by maturing funds of
c.N920bn positively impacting the system.
Benchmark
FGN Bonds |
||||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
|
14.50 15-Jul-21 |
6.77 |
6.05 |
(0.01) |
|
16.39 27-Jan-22 |
6.25 |
5.25 |
(0.01) |
|
12.75 27-Apr-23 |
7.17 |
6.91 |
(0.01) |
|
14.20 14-Mar-24 |
8.14 |
7.29 |
(0.01) |
|
13.53 23-Mar-25 |
8.14 |
6.89 |
0.00
|
|
12.50 22-Jan-26 |
9.00 |
8.75 |
0.00
|
|
16.29 17-Mar-27 |
10.08 |
9.60 |
(0.13) |
|
13.98 23-Feb-28 |
10.13 |
9.72 |
0.04 |
|
12.15 18-Jul-34 |
10.45 |
10.02 |
0.00
|
|
12.40 18-Mar-36 |
10.63 |
10.22 |
0.00
|
|
16.2499 18-Apr-37 |
10.81 |
10.23 |
0.00
|
|
14.80 26-Apr-49 |
11.99 |
11.91 |
0.01 |
|
Treasury Bills
The Treasury Bills market
traded on bullish sentiment, as buy pressure spilled across the OMO curve.
Demand was mostly camped at the long-end (5-Jan & 16-Feb), as we saw local
players lock-in incoming OMO maturities of c.N920bn, with supply coming from
foreign investors. Yields compressed by an average of c.5bps across the
benchmark OMO curve.
The NTB side traded quiet,
as local investors stayed cautious as they await PMA results. We saw
pocket-size demand on the short-end, with client orders being filled. Yields
compressed by an average of c.20bps across the benchmark NTB bills.
At the PMA, the DMO rolled
over a total of c.N104.12bn across three tenors on offer. Stop rates closed
lower on the 364-D (5.70%), while rates remained unchanged on the 91-D
(3.00%bps), 182- D (4.00%) respectively from the last PMA.
We expect demand to persist
in tomorrow's session, as excess cash at the disposal of investors, will force
activity in the secondary market. We also expect the CBN to float an OMO
auction, as c.N920bn of maturing funds flow into the system.
Primary Market
Auction Results |
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|
|
|
|
|
NTB -
26 Feb 2020 |
||||
Tenor |
Rate (%) |
Offer (₦'bn) |
Sub (₦'bn) |
Sale (₦'bn) |
91-days |
3.00 |
20.37 |
41.26 |
20.37 |
182-days |
4.00 |
31.75 |
45.18 |
31.75 |
364-days |
5.70 |
52.00 |
175.08 |
52.00 |
Benchmark OMO Bills |
|||
Description |
Bid (%) |
Offer (%) |
Day Change
(%) |
NGOMO 19-Mar-20 |
11.00 |
9.00 |
0.00 |
NGOMO 2-Apr-20 |
11.00 |
8.00 |
(0.50) |
NGOMO 14-May-20 |
11.00 |
9.00 |
0.00 |
NGOMO 4-Jun-20 |
11.00 |
9.00 |
(0.10) |
NGOMO 2-Jul-20 |
11.25 |
9.00 |
(0.25) |
NGOMO 13-Aug-20 |
11.50 |
10.50 |
0.00 |
NGOMO 3-Sep-20 |
11.50 |
10.90 |
(0.25) |
NGOMO 1-Oct-20 |
11.65 |
10.50 |
(0.10) |
NGOMO 3-Nov-20 |
11.75 |
10.75 |
0.50 |
NGOMO 1-Dec-20 |
11.75 |
10.85 |
(0.10) |
NGOMO 5-Jan-21 |
11.70 |
11.10 |
0.25 |
Benchmark
NTBills |
|||
Description |
Bid (%) |
Offer (%) |
Day Change
(%) |
NIGTB 2-Apr-20 |
5.00 |
1.00 |
0.00 |
NIGTB 2-Jul-20 |
6.00 |
1.00 |
(1.00) |
NIGTB 1-Oct-20 |
7.00 |
2.00 |
0.00 |
NIGTB 14-Jan-21 |
7.00 |
2.00 |
0.00 |
Money Market
The interbank rates remained stable at single-digit figures, with the
market still awash with liquidity. OBB and OVN rates closed at 2.40% and 2.90%
respectively.
With c.920bn of maturing OMO bills expected to flow into the market, we expect rates to remain to dip slightly despite the possibility of an OMO auction.
Money Market Rates |
||
|
Current (%) |
Previous (%) |
Open
Buy Back (OBB) |
2.40 |
2.29 |
Overnight
(O/N) |
2.90 |
3.07 |
FX Market
At the Interbank, the
Naira/USD spot and SMIS rate remained unchanged at N306.95/$ and N358.51/$
respectively. The Naira depreciated at the I&E FX window, gaining 19k to
close at N364.52/$.
The parallel market, the cash rate appreciated by 20k to close at N358.30/$, while the transfer rate also remained stable at N367.00/$.
Eurobond
The bears were still out in today's NGERIA
Sovereign session, as we continued to see better offers across the
sovereign yield curve. With a c.2.36% D/D dip in crude oil prices, investors
continued to sell-off, as they trade global market sentiment. Yields expanded
by c.12bps across the sovereign yield curve.
The NGERIA Corps tickers continued it mixed sentiment, with
yields on the ACCESS 2021s weakening by c.14bp, while the FIDBAN 2022s and
ETINL 2024s dipped by c.1bp and c.3bps respectively.
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