Bonds & Fixed Income | |
Bonds & Fixed Income | |
4189 VIEWS | |
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Monday, April 29, 2019 07:00 PM / Anchoria AM Research
Money Market
Barring any significant liquidity mopping action of the CBN, the money
market rates are expected to trend lower due to expectation of inflow from FAAC
payment and OMO maturity of N62 billion.
Instrument |
18/04/2019 |
26/04/2019 |
Change |
OBB |
9.86% |
16.43% |
+6.57% |
OVN |
10.57% |
17.29% |
+6.72% |
Source:
Anchoria AM Research, FMDQ OTC
Forex: USD/NGN
The
CBN Official rate fell marginally by 0.02% last week to close at N306.90/$
while the rate in the Investors and Exporters’ FX Window rose by 0.10% to close
at N360.64/$ due to decrease in market turnover rate by 16.33% week-on-week to
$1.20bn from $1.43bn in previous week However, Naira at the parallel market
remained unchanged to close at N360.00/$ (using the Everdon BDC Rate).
We expect rates in the parallel market to remain constant as the apex
bank continues to supply FX into the market, coupled with its frequent
Wholesale and Retail SMIS programme.
18/04/2019 |
26/04/2019 |
Change |
|
CBN Official Rate |
306.95 |
306.90 |
-0.02% |
I&E FX Window |
360.29 |
360.64 |
+0.10% |
Everdon BDC Rate |
360.00 |
360.00 |
+0.00% |
Source:
Anchoria AM Research, FMDQ OTC
Commodities
Brent Crude Oil rose by 0.25% to close at $72.15 per barrel while WTI
Crude Oil fell by 1.09% to close at $63.30 per barrel. The decline in WTI crude
oil price was due to President Donald Trump personal push to OPEC to keep
prices down and as Russia’s assured it will resume normal oil flows to Eastern
Europe after chemical contamination.
On the bullish side, the White House announced it will tighten sanctions
on Iranian crude flows, discontinuing exemptions that allow China
and some other buyers to keep importing.
Fixed Income
Bond:
FGN
The
Bond Market closed on a bearish note last week as the DMO held its monthly Bond
Auction in which the debut 30 years Bond was issued. Average yields rose by
14bps to close the week at 14.29%.
The
Bond Auction last week witnessed 149% subscription rate with the Debt
Management Office (DMO) allotting a total of N97.4 billion. The 30-year Bond
was priced at 14.80%.
Secondary
Market
Source:
Anchoria AM Research, FMDQ OTC
Treasury
Bills
The
secondary treasury bills market closed on a bullish note last week due to
relatively buoyant liquidity and expectation of reduced spot rate in the
Primary Market auction which is scheduled to hold this week. Average yield rose
by 14bps to close at 13.12%.
Secondary
Market
Source:
Anchoria AM Research, FMDQ OTC
Anchoria Research: +234 908 720
6076; research@anchoriaam.com
Related News
1. Average Yield Contracts to 13.1%
Amidst Buying Interests; PMA Holds on Thursday
2. Summary of April 2019 FGN Bond Auction Results
3. Average Yield Moderates to 13.3% on Absence of OMO
Auctions
4. Average Money Market Rate Fell By 10.72% To Settle At
10.22%
5. Invest in FGN Monthly Bond Auction – April 2019
6. Ecobank Launches New 5-Year Eurobond at 9.75% Re-Offer
7. Outlook For Yields On FGN Bonds Remain Relatively Stable
With Renewed Buying Interests On Maturities
8. Bond Yields Maintain Slight Uptrend Following Selloff on
the 20-year
9. Bond Yields Trend Higher Following Selloff on Mid and
Long Tenors
10. Funding For CBN Wholesale FX Auction Pressures Short Term
Rates Higher
11. Average T-Bills Yield Contracts Marginally to 13.4% as
CBN Resumes OMO Auctions
12. Average Money Market Rate Rose By 5.45% To Settle At
15.72%
13. Bond Yields Compress Marginally Following Bargain Hunt on
Short Tenors