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Bond Market Maintains Bullish Run as Headline Inflation Declines to 15.91%

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Wednesday, November 15, 2017 6:48PM / @ZedcrestCapital 

Proshare Nigeria Pvt. Ltd.


Bonds

The Bond market maintained its bullish run in today’s session, as yields declined further by an average of 4bps to close at 14.89%, marking a 3rd consecutive decline in yields from 15.04% opening levels on Monday. The 2019 and 2037 bonds were the most patronized, with yield declines of 16bps and 9bps respectively. We expect this trend to be sustained tomorrow as we have witnessed renewed interest from local clients at current levels. 

Proshare Nigeria Pvt. Ltd.


Treasury Bills

The T-bills market remained active on the short-end of the curve, with yields declining by about 16bps avg. due to the surplus liquidity in the system. The medium to long end of the curve however traded flat, as market players took their demand to the primary market auction by the CBN. The CBN sold a total of N6bn  (91-day), N6bn (182-day) and  N107.94bn (364-day) NTBs at today’s PMA, with rates clearing at 13.00%, 15.25% and 15.60% respectively. We expect the market to be slightly bullish tomorrow, as market players look to re-invest inflows from c.N133bn maturing OMO T-bills. 

Proshare Nigeria Pvt. Ltd.


Money Market

The OBB and OVN rates declined slightly to close today at 10.17% and 11.33%, due to the surplus liquidity in the system, currently estimated at c.N80billion long. We expect rates to trend lower tomorrow due to the expected inflows from OMO maturities. 

Proshare Nigeria Pvt. Ltd.


FX Market

The CBN Official spot rate remained stable its previous day rate of N306.00/$. Its external reserves is however recorded to have improved by 2.04% to $34.27billion as at 13th of November. Rates at the Investors and exporters FX window depreciated slightly to N360.42/$ from N360.27/$ in the previous session. The parallel market rate also depreciated to N362.50/$ due to scarcity of dollars in that segment of the market today.

Proshare Nigeria Pvt. Ltd.

For more details email research@zedcrestcapital.com or call the dealing desk via 01-6311667  

 

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