The Nigeria Bond watch - Review and Outlook @081516


Monday, August 15, 2016 12:29pm /DLM Research

Download Full Report Here


During the review week, the Nigerian fixed income OTC market was influenced by: 1) the release of August 2016 FGN bond offer circular by the DMO; 2) OMO bills auctions and redemption - by the CBN.

At the OMO auctions, the CBN offered OMO bills worth N100.00billion with tenors ranging between 188day and 285day but sold N256.41billion at marginal rate of 18.00%. Subscription levels stood at N341.11billion (341%) of total volume offered. In our opinion, the high subscription was due to buoyant liquidity in addition to inflow of N113.68billion recorded from OMO bills redemption.

It was a mixed reaction in the fixed income market last week as buoyant system liquidity enhanced buying activities of mostly short and long tenors whilst mid-tenored maturities witnessed mild sell-off. Consequently, yields declined marginally by an average of 7basis points across the curve on a week-on-week comparism.

The DMO is expected to re-open N40.00billion, N30.00billion and N40.00billion worth of 14.50% JUL 2021 (5yr), 12.50% JAN 2026 (10yr) and 12.40% FGN MAR 2036 (20yr) respectively at this week’s FGN bond auction. Also, treasury bills worth N62.44billion will be offered (91day: N32.44billion and 182day: N30.00billion whilst anticipating the redemption of treasury and OMO bills worth N62.44billion and c.N118.10billion respectively. Barring any OMO auction from the CBN, the market may continue its bullish trend this week with continuous downwards movement in yields as system liquidity soars and dealers take positions ahead of the auctions.

Download Full Report Here

Related News
The Nigeria Bond watch – Review and Outlook @080816
The Nigeria Bond Watch - Review and Outlook @072516
The Nigeria Bond Watch - Review and Outlook @071816
An Auction to Please the DMO
Summary of Auction Results for July 2016
The Nigeria Bond Watch - Review and Outlook @071116
Invest in FGN Monthly Bond Auction – July 2016
The Nigeria Bond Watch - Review and Outlook @070416
Challenge of the DMO’s Issuance Calendar
The Nigeria Bond Watch - Review and Outlook @062716
Expect to see a pick-up in FGN external borrowing
The Nigeria Bond Watch - Review and Outlook @062016

13.Summary of Auction Results for June 2016
The Nigeria Bond Watch - Review and Outlook @061316 

Disclaimer/Advice to Readers:
While the website is checked for accuracy, we are not liable for any incorrect information included. The details of this publication should not be construed as an investment advice by the author/analyst or the publishers/Proshare. Proshare Limited, its employees and analysts accept no liability for any loss arising from the use of this information. All opinions on this page/site constitute the authors best estimate judgement as of this date and are subject to change without notice. Investors should see the content of this page as one of the factors to consider in making their investment decision. We recommend that you make enquiries based on your own circumstances and, if necessary, take professional advice before entering into transactions. This article is published with the consent of Dunn Loren Merrifield, the author(s) for circulation to the online investment community in accordance with the terms of usage. Further enquiries should be directed to the author whose e-mail is [] Dunn Loren Merrifield Limited.

Related News