Bonds & Fixed Income | |
Bonds & Fixed Income | |
1175 VIEWS | |
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PROSHARE | |
PROSHARE |
Tuesday, August 11, 2020 / 5:51 AM / By Zedcrest Capital / Header Image Credit: Knowledge Wharton
The
FGN bond market kicked off a new week on a very drab note but picking slightly
towards the end of the session. Much of today's activities focused on the
auction bonds and some benchmark bonds; 2034s and 2049s papers in particular.
Few trades settled around 9.85% for the 2034s while the 2049s saw high and lows
of 9.95% and 9.88%, trading within this range.
The
2050s remained largely bided with very few offers available to match for the
trade. The earlier hours of the day started with its quote opening wide at
10.10%/9.80% but squeezed slightly towards the end of the trading session as
the few transactions sealed settled around 9.90%. By and large, yield
compressed by an average of c.14bps across the yields curve.
For
tomorrow, we expect activities to continue to pick especially at the tail of
the curve as more local investors continue to show interest in long-dated
bonds.
Benchmark FGN Bonds |
||||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
|
16.39 27-Jan-22 |
5.00 |
2.80 |
0.00 |
|
12.75 27-Apr-23 |
7.05 |
4.20 |
0.00 |
|
14.20 14-Mar-24 |
7.10 |
4.50 |
0.00 |
|
13.53 23-Mar-25 |
7.50 |
5.15 |
0.00 |
|
12.50 22-Jan-26 |
7.50 |
6.65 |
(0.50) |
|
16.29 17-Mar-27 |
8.20 |
7.55 |
(0.65) |
|
13.98 23-Feb-28 |
8.35 |
7.70 |
(0.40) |
|
14.55 26-Apr-29 |
9.45 |
8.20 |
0.00 |
|
12.15 18-Jul-34 |
10.05 |
9.00 |
0.00 |
|
12.40 18-Mar-36 |
10.10 |
8.90 |
0.00 |
|
16.2499 18-Apr-37 |
10.00 |
9.65 |
(0.15) |
|
14.80 26-Apr-49 |
10.08 |
9.90 |
0.00 |
|
Treasury Bills
At the OMO bills space, trade volumes continue to dwindle
with the few trades seen largely client-driven. We noted a bit of interest in
the longer-dated bills May, June, and July papers as the May/June bill started
off the day around 4.40% levels but dropped by 15bps to close the day at 4.25%
on the offer. The July bills were offered better with most of its trading
settling around 4.85%.
The NTB space, also traded on a very light note large driven
by retail-orders who cherry-picked on few May bills offered better than its
pairs
For tomorrow, market activities are expected to continue to
trade on this sluggish note while interest may remain for longer-dated OMO
bills.
Benchmark OMO Bills |
|||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
NGOMO 8/13/2020 |
5.00 |
0.01 |
1.00 |
NGOMO 9/3/2020 |
5.50 |
0.01 |
1.00 |
NGOMO 10/1/2020 |
5.50 |
0.01 |
1.00 |
NGOMO 11/03/2020 |
6.00 |
0.01 |
1.00 |
NGOMO 12/01/2020 |
6.00 |
0.01 |
1.00 |
NGOMO 02/02/2021 |
6.50 |
1.00 |
0.50 |
NGOMOB 0 03/02/21 |
7.00 |
1.00 |
1.00 |
NGOMOB 0 03/02/21 |
7.00 |
1.00 |
1.00 |
NGOMOB 0 05/11/21 |
7.00 |
1.00 |
1.00 |
Benchmark NTBills |
|||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
NIGTB 10/1/2020 |
3.00 |
0.01 |
0.50 |
NIGTB 11/12/2020 |
3.00 |
0.01 |
0.00 |
NIGTB 01/14/2021 |
3.50 |
0.10 |
0.50 |
NIGTB 02/11/2021 |
3.50 |
0.10 |
0.00 |
NIGTB 04/29/2021 |
4.00 |
0.10 |
0.50 |
NIGTB 05/13/21 |
4.00 |
0.10 |
0.00 |
NIGTB 06/10/21 |
4.00 |
0.10 |
0.00 |
Money
Markets
Interbank
rates continued to drop, plunging by an average c.15% to open the week. System
liquidity opened at c.N182.07BN positive, and with no significant funding
pressures on the day, interbank rates closed the day in the single-digit corridor
for OBB and OVN rates at 5.25% and 6.13% respectively.
With no significant funding
pressures, we expect the market to trade around this level in interbank session
tomorrow.
Money Market Rates |
||
|
Current (%) |
Previous (%) |
Open Buy Back (OBB) |
5.25 |
6.33 |
Overnight (O/N) |
6.13 |
7.17 |
FX
Market
Transaction
volumes remained very weak in the IEFX window, with very low volumes passing
through the market albeit the Naira appreciate by N0.50k. Most banks remained
bided for the most part of the trading session between N383.00/$ and N387.00/$
while all other markets segments remained stable compared to Friday's closing.
FX Market |
||
Current (N/$) |
Previous ( N/$) |
|
CBN Spot |
381.00 |
381.00 |
CBN SMIS |
380.69 |
380.69 |
I&E FX Window |
385.50 |
386.00 |
Cash Market |
473.00 |
473.00 |
Transfer Market |
475.00 |
475.00 |
Eurobonds
The NGERIA Sovereigns opened the new week on
a weaker note with less aggressive bids shown across the curve following the
rebound in oil prices last week. The 2025s and 2049s papers were the greatest
losers across the sovereign curve as locals showed no interest in papers
offered better, compared to the market, at the belly and tail of the curve.
Consequently, we saw yields expand on an average of c.2bps across the curve.
The NGERIA Corps also
had a quiet session albeit large movement in yield for the SEPPLN 22s which
compressed by c.45bps compared to Friday's closing.
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