| Bonds & Fixed Income |    941 VIEWS  |
| Bonds & Fixed Income | |
| 941 VIEWS | |
 | |
| PROSHARE | |
| PROSHARE | |
Wednesday, April 15, 2020 / 10:03 PM / Zedcrest
Capital / Header Image Credit: China Daily
Below are highlights of trading activities in the fixed income and forex market on April 15, 2020
The Bond Market shrugged off the previous
session's losses, as yields compressed off renewed demand. Demand from local
clients was noted at the short- to mid-end of the benchmark curve, most
especially the 2026s and 2028s maturities. The DMO also released its offer
circular for the monthly bond auction, offering N60bn in total across three
tenors. Consequently, yields compressed by c.9bps on the average across the
benchmark curve.
With the DMO maintaining
course with its borrowing plans, we expect some bearish tension to ease off in
the market. With the Dangote Cement bond issue looking to mop up at least
N100bn in local demand, we expect a slowdown in demand leading up to next
week's auction.
|
Benchmark FGN Bonds |
||||
|
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
|
|
14.50 15-Jul-21 |
5.90 |
5.51 |
(0.13) |
|
|
16.39 27-Jan-22 |
6.81 |
6.13 |
(0.21) |
|
|
12.75 27-Apr-23 |
9.82 |
8.94 |
(0.04) |
|
|
14.20 14-Mar-24 |
10.23 |
8.94 |
(0.06) |
|
|
13.53 23-Mar-25 |
11.99 |
9.63 |
(0.02) |
|
|
12.50 22-Jan-26 |
11.99 |
9.51 |
(0.59) |
|
|
16.29 17-Mar-27 |
12.05 |
11.85 |
(0.29) |
|
|
13.98 23-Feb-28 |
12.23 |
11.88 |
(0.03) |
|
|
14.55 26-Apr-29 |
12.28 |
11.97 |
0.01 |
|
|
12.15 18-Jul-34 |
12.42 |
12.10 |
0.00 |
|
|
12.40 18-Mar-36 |
12.47 |
11.98 |
0.07 |
|
|
16.2499 18-Apr-37 |
12.50 |
12.22 |
0.10 |
|
|
14.80 26-Apr-49 |
12.65 |
12.53 |
(0.01) |
|
Treasury Bills
Demand for OMO bills slowed in today's session despite
improved system liquidity. However, rates continued to drop on the long-dated
OMO maturities with offers dropping below the 11.00% mark. Rates closed lower
by c.8bps on the average on the benchmark OMO curve.
NTBs traded on a quiet note, as investors focused on the PMA.
At the PMA successfully rolled over c.N89.99bn while dropping stop rates by an
average of c.34bps across the three tenors on offer. Demand remained heavy at
the auction, with an average bid-to-cover ratio of c.2.68X across all tenors on
offer.
We expect market dynamics to remain stable in tomorrow's
session as liquidity supports demand.
|
Primary Market Auction Results
|
||||
|
NTB - 15 April 2020 |
||||
|
Tenor |
Offer (N'bn) |
Subscription (N'bn) |
Sale (N'bn) |
Stop Rate (%) |
|
91 days |
5.85 |
13.10 |
5.85 |
1.93 |
|
182 days |
3.50 |
12.56 |
3.50 |
2.74 |
|
364 days |
49.14 |
109.39 |
49.14 |
4.00 |
|
Benchmark OMO Bills |
|||
|
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
|
NGOM
5/14/2020 |
11.25 |
9.50 |
0.00 |
|
NGOM
6/4/2020 |
10.75 |
6.00 |
(0.50) |
|
NGOM
7/2/2020 |
11.25 |
8.00 |
0.00 |
|
NGOM
8/13/2020 |
11.25 |
9.75 |
0.00 |
|
NGOM
9/3/2020 |
11.25 |
10.35 |
0.00 |
|
NGOM
10/1/2020 |
11.50 |
10.50 |
0.00 |
|
NGOM
11/03/2020 |
11.50 |
10.00 |
0.00 |
|
NGOM
12/01/2020 |
12.00 |
10.50 |
0.00 |
|
NGOM
01/05/2021 |
12.25 |
11.00 |
0.00 |
|
NGOM
02/02/2021 |
12.00 |
10.90 |
(0.50) |
|
NGOM
03/02/21 |
12.00 |
10.00 |
(0.50) |
|
Benchmark NTBills |
|||
|
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
|
NIGTB 2-Jul-20 |
2.10 |
1.00 |
0.00 |
|
NIGTB 1-Oct-20 |
3.00 |
1.00 |
(0.10) |
|
NIGTB 12-Nov-20 |
3.65 |
1.00 |
0.15 |
|
NIGTB 14-Jan-21 |
3.85 |
1.00 |
0.10 |
|
NIGTB 11-Feb-21 |
4.00 |
1.00 |
0.00 |
Money Markets
Money Market
Rates dropped further today, as some refunds hit local banks and pushing system
liquidity to open at c.N629.33bn. OBB and OVN rates dropped to close at 2.00%
and 2.42% respectively.
Rates are
expected to remain stable for the rest of the week, as OMO maturities are
expected to hit system tomorrow.
|
Money Market Rates |
||
|
|
Current (%) |
Previous (%) |
|
Open
Buy Back (OBB) |
2.00 |
2.33 |
|
Overnight
(O/N) |
2.42 |
2.83 |
FX Market
Traded volumes in the I&E
window remain poor, as only c.$38.61million changed hands in today’s session.
Naira recovered a bit, to close at N385.63/$ at the window while the CBN rates
remained unchanged again.
At the parallel market, a
lack of supply continued to weaken the Naira, as sellers dictate the tune. Cash
rate remained stable to close at N415.00/$ while Transfer rates depreciated by of
N2.00k to close at N432.00/$ respectively.
|
FX Market |
||
|
Current (N/$) |
Previous ( N/$) |
|
|
CBN
Spot |
361.00 |
361.00 |
|
CBN
SMIS |
380.69 |
380.69 |
|
I&E
FX Window |
385.63 |
384.83 |
|
Cash
Market |
414.00 |
414.00 |
|
Transfer
Market |
432.00 |
430.00 |
The NGERIA Sovereigns seemed to have lost their charm, as yields
rose across the sovereign papers off the back of falling crude oil prices. Yields
expanded by c.37bps on the average across the benchmark curve, with the market
fully offered with no bids seen.
The NGERIA Corps also traded on a weaker note as demand
dropped across most tracked tickers, save for the FIDBAN 2022s which rallied
c.11bps.
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7.
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8.
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10. OMO Rates Continue To Plummet Amidst Excess System
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11.
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12. Now Open - Dangote Cement Plc Bond Offer; April FGN
Savings Bonds Cancelled
13. Anchoria Fixed Income Monitor: Buoyant System Liquidity
amid COVID-19
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