Bonds & Fixed Income | |
Bonds & Fixed Income | |
709 VIEWS | |
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PROSHARE | |
PROSHARE |
Tuesday, July 07, 2020 / 6:33 PM / By Zedcrest Capital / Header Image Credit: US News Money
The
FGN bonds market traded on a mixed sentiment today, slightly bullish at the
short-end and bearish at the long-end of the bond curve. We still saw interest
in the 2023s paper, largely driven by client orders, with trades settling
around 4.15% levels. At the tail of the curve, we saw a bit of profit-taking on
the 2034s and 2036s maturities which offered around 10.10% for most of the
trading session. Subsequently, yields compressed by c.19bps across the benchmark
curve.
We
expect more profit-taking action the rest of the week, especially at the long-end
of the bond curve.
Benchmark FGN Bonds |
||||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
|
14.50 15-Jul-21 |
4.34 |
3.40 |
(0.02) |
|
16.39 27-Jan-22 |
4.41 |
3.66 |
(1.08) |
|
12.75 27-Apr-23 |
5.87 |
3.98 |
(0.01) |
|
14.20 14-Mar-24 |
5.53 |
4.39 |
(0.53) |
|
13.53 23-Mar-25 |
6.52 |
5.07 |
(0.43) |
|
12.50 22-Jan-26 |
7.56 |
6.92 |
(0.20) |
|
16.29 17-Mar-27 |
8.51 |
7.85 |
(0.17) |
|
13.98 23-Feb-28 |
8.54 |
7.94 |
(0.15) |
|
14.55 26-Apr-29 |
8.89 |
8.20 |
0.09
|
|
12.15 18-Jul-34 |
10.21 |
10.00 |
0.03
|
|
12.40 18-Mar-36 |
10.18 |
10.00 |
(0.02) |
|
16.2499 18-Apr-37 |
10.16 |
10.03 |
0.00 |
|
14.80 26-Apr-49 |
11.05 |
10.85 |
0.00 |
|
Treasury
Bills
The
OMO bills space traded on a very bearish note as system liquidity was further
squeezed following another statutory debit
(AMCON Charge) hit banks. January papers weakened by 70bps
D/D, with trades settling around 6.10% for most of the trades executed. We also
saw a bit of action on October bills in small volumes which traded around
5.35%. The benchmark OMO curve expanded slightly at an average of c.6bps at the
close of the trading session.
We
expect the market to remain bearish in the interim triggered by the liquidity
shortage in the interbank market.
Benchmark OMO Bills |
|||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
NGOMO
8/13/2020 |
4.00 |
1.20 |
0.00 |
NGOMO
9/3/2020 |
6.50 |
1.20 |
0.50
|
NGOMO
10/1/2020 |
7.50 |
1.20 |
0.00 |
NGOMO
11/03/2020 |
7.50 |
1.20 |
0.00 |
NGOMO
12/01/2020 |
7.00 |
1.20 |
0.00 |
NGOMO
02/02/2021 |
7.50 |
1.20 |
0.00 |
NGOMOB 0
03/02/21 |
7.50 |
1.20 |
0.00 |
NGOMOB 0
03/02/21 |
7.50 |
1.20 |
0.00 |
NGOMOB 0
05/11/21 |
7.50 |
1.20 |
0.00 |
Benchmark NTBills |
|||
Description |
Bid (%) |
Offer (%) |
Day Change (%) |
NIGTB
10/1/2020 |
3.00 |
0.10 |
(1.00) |
NIGTB
11/12/2020 |
3.00 |
0.10 |
(1.00) |
NIGTB
01/14/2021 |
4.00 |
0.10 |
0.00 |
NIGTB
02/11/2021 |
4.00 |
0.10 |
0.00 |
NIGTB
04/29/2021 |
4.00 |
0.10 |
0.00 |
NIGTB
05/13/21 |
4.00 |
0.10 |
0.00 |
NIGTB
06/10/21 |
4.00 |
0.10 |
0.00 |
Money
Markets
The
interbank market opened the day at c.N292.72BN negative as AMCON Charge debit
from the APEX bank threw the interbank market into further funding pressure
causing banks to scurry to raise funds. Most of the banks camped at the SLF
window consequently causing rates to move upward slightly by an average of
c.63bps.
We
expect interbank rates to hover around this level as the banks are expected to
remain at the SLF window to plug funding gaps in the short term.
Money Market Rates |
||
|
Current (%) |
Previous (%) |
Open Buy Back (OBB) |
19.75 |
19.00 |
Overnight (O/N) |
21.50 |
21.00 |
FX
Market
The
FX remained muted with rates remain flat on most of the market indices. The
IEFX window saw a bit of action although remained bided at N387/$ and N389/$.
However, at the Cash and transfer market, the naira depreciated by an average
of N0.85k to close the day at N458.50/$ and N462.50/$ respectively.
FX Market |
||
Current (N/$) |
Previous ( N/$) |
|
CBN Spot |
361.00 |
361.00 |
CBN SMIS |
380.69 |
380.69 |
I&E FX Window |
386.50 |
386.50 |
Cash Market |
458.50 |
458.30 |
Transfer Market |
462.50 |
461.00 |
Eurobonds
It
was a typical session in the NGERIA Sovereigns, with trickles of demand seen
across the short- and mid-tenor papers causing yields to compress slightly by
another c.6bps on the average across the sovereign curve. In the SSA space, the
Angola 2025s had a second consecutive weak session as sellers continue to
improve offers in another profit-taking driven session for the paper.
The NGERIA Corps papers had a quiet session, as local demand on the FIDBAN 2022s caused yields on the paper to compress by c.16bps D/D.
Related News
1. System Liquidity Crashes Into Negative Territory,
Freezing Trading Activities In the FI Space
2. CBN Adjusts Naira Value to N380 per Dollar at the
Secondary Market Interventions Sale
3. Strong Demand Persists at PMA; Average Yield Declines
15bps WoW
4. Calm Day in the Bonds Market, as Market Demand Shifts to
Head of the Curve
5. CBN Keeps A Tight Hold On System Liquidity In OMO Auction
6. Rates Fall Again As Local Demand Piles Up At NTB Auction
7. FGN Bond Yields Still Give Way Despite Improved Offers Across The Curve