Bond yields drop 20bps with significant demand for the 10- and 20-yr


Thursday , January 4, 2018 10:00PM / @ZedcrestCapital

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 Proshare Nigeria Pvt. Ltd.


The bond market traded today on a significantly bullish note with significant demand for the 10– and 20-yr bonds by some local and offshore clients. Average bond yields consequently declined by 20bps to close today at 13.63%. We expect slight support for yields at these levels as market players anticipate release of the Q1 FGN Bond calendar. We however maintain our bullish bias ahead of the bond auction for this month.

Proshare Nigeria Pvt. Ltd.


Treasury Bills

The T-bills market traded on a bullish note, with client demand mostly on the Feb and Nov bills, as some market players tried to take some positions on the long of the curve. Yields consequently declined by c.34bps to around 13% levels on avg.  We also witnessed sizeable subscription of c.N187bn for today’s OMO auction, with the total amount subscribed sold at 12.70% and 14.50% on the 91- and 189-day bills offered. We expect continued buying interests in the T-bills space in the near term.


 Proshare Nigeria Pvt. Ltd.

Money Market

The OBB and OVN rates declined slightly to close at 3.67% and 4.49%, as inflows of c.N193bn OMO maturities offset outflows for the OMO auction sales of today. System liquidity is consequently estimated to close at c.N483bn. We expect rates to close slightly higher tomorrow, due to expected OMO and retail FX sales by the CBN.

Proshare Nigeria Pvt. Ltd.


FX Market

The CBN Official spot rate remained stable at its previous day rate of N305.95/$. Rates at the Investors and exporters FX window depreciated marginally by 0.02% to N361.08/$, while rates at the parallel market stayed flat at N360.60/$.

Proshare Nigeria Pvt. Ltd.

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1. T-bill PMA rates crash by 91bps with significant over subscription on the 364-day

2. CBN to Sell N149bn Treasury bills in its first PMA for the year

3. Ahead of Next T-bills Auction Scheduled for 3rd January, 2018

4. Bond Yields Closed the Year at 14% as Market Players Repriced the 20-Yr Lower

5. Bond yields rise above 14% with slight profit taking on the 20-yr

6. Slight uptick in Bond Yields amid Profit Taking on the 10-yr

7. Funding Rates remain Stable as system liquidity closes positive

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