NTB Auction Oversubscribed by 67%, as Stop Rates Clear 80bps Higher

Proshare

Thursday, August 29, 2019 / 7:00 AM / By Zedcrest Capital / Header Image Credit: Dna India

 

The NTB auction was oversubscribed by 67%, stop rates cleared c.84bps higher than their previous levels, with the highest increase observed on the 91-day tenor (+140bps).

We expect the market to trade on a relatively mixed note tomorrow, as market players anticipate a renewed OMO auction by the CBN, given the c.N393bn in maturing OMO bills. The short end of the curve should remain slightly bullish, while yields on the long end should remain slightly pressured.

 

Bonds

The FGN Bond market traded on relatively quiet note, but yields moderated further by c.2bps, owing to slight demand interests still on some short and mid tenured bonds.

 

We expect yields to remain relatively stable in the near term, barring a significant increase in OMO T-bill stop rates by the CBN.

 


Benchmark FGN Bonds

Description

Bid (%)

Offer (%)

Day Change (%)

14.50 15-Jul-21

14.16

13.69

0.00

16.39 27-Jan-22

14.15

14.00

(0.05)

12.75 27-Apr-23

14.17

13.90

(0.09)

14.20 14-Mar-24

14.04

13.66

(0.03)

13.53 23-Mar-25

14.19

13.65

(0.04)

12.50 22-Jan-26

14.05

13.81

(0.05)

16.29 17-Mar-27

14.19

14.04

(0.06)

13.98 23-Feb-28

14.18

14.06

(0.03)

12.15 18-Jul-34

14.48

14.20

0.02

12.40 18-Mar-36

14.54

14.21

0.05

16.2499 18-Apr-37

14.58

14.23

0.02

14.80 26-Apr-49

14.53

14.45

(0.02)


Source: Zedcrest Dealing Desk
 

 

 

Treasury Bills

The T-bills market remained slightly bullish, owing to sustained interests on some short and mid tenured bills. The long end of the curve was however relatively flat, as market players placed bids for higher yields at the NTB auction.

 

Benchmark Treasury Bills

Description

Bid (%)

Offer (%)

Day Change (%)

12-Sep-19

13.75

12.00

(0.75)

3-Oct-19

13.75

12.85

(0.75)

14-Nov-19

13.50

11.50

(0.50)

5-Dec-19

13.50

12.50

(0.10)

2-Jan-20

13.75

13.00

0.00

6-Feb-20

14.00

13.00

0.00

19-Mar-20

13.75

13.00

(0.35)

2-Apr-20

13.80

12.70

(0.20)

14-May-20

13.80

13.05

0.00

04-Jun-20

13.80

12.70

0.00

02-Jul-20

13.80

12.70

0.05

13-Aug-20

13.75

12.10

0.15

Source: Zedcrest Dealing Desk

 

 

Money Market

Rates in the money market remained stable as there were no significant funding pressures in the system. The OBB and OVN rates consequently ended the session at 11.86% and 12.79%, with system liquidity currently estimated at c.N35bn positive.

 

We expect rates to trend lower tomorrow, due to the expected inflows from OMO T-bill maturities.

 

Money Market Rates

 

Current (%)

Previous (%)

Open Buy Back (OBB)

11.86

11.43

Overnight (O/N)

12.79

12.36

Source: FMDQ, Zedcrest 

 

 

 

FX Market

At the interbank, the Naira/USD spot and SMIS rates remained stable at N307.00/$ and N358.04/$. The Naira depreciated at the I&E window by 28k to close at N363.16/$. At the parallel market, the cash and transfer rates remained stable at N359.00/$ and N363.00/$ respectively.

 

FX Market

 

Current (N/$)

Previous ( N/$)

CBN Spot

307.00

307.00

CBN SMIS

358.04

358.04

I&E FX Window

363.16

362.88

Cash Market

359.00

359.00

Transfer Market

363.00

363.00

Source: CBN, FMDQ, REXEL BDC

 

Eurobonds

The NGERIA Sovereigns traded on a weaker note, with yields rising further by c.5bps on the day.

 

In the NGERIA corps, we witnessed some buying interest in the ACCESS 21 and UBANL 22, whilst other tickers remained relatively stable on the day.


 

 

 

Proshare Nigeria Pvt. Ltd.



Proshare Nigeria Pvt. Ltd. 

 

 

 

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