Wednesday, January 31, 2018, 6.00PM/Zedcrest Capital
***Total Deregulation of Downstream Will Attract More Revenue to Govt *** – Olawore
The bond market traded on a slightly more active note in today’s session with some buys on the 2021 bond taking yields lower by c.2bps despite slight sell on the 2037s. Yields have stayed relatively flat week to date, with most demand seen on the shorter tenured bonds. We expect the market to remain scantily traded, with slight uptick in yields expected in the near term due to lack of significant client interest at current levels. Broader sentiment however remains bullish on the backdrop of anticipated debt restructuring and monetary policy easing.
The OBB and OVN rates closed relatively unchanged from previous levels at 4.83% and 5.25%, as system liquidity remained buoyant at c.N319bn positive. We expect rates to decline slightly tomorrow due to anticipated inflows from OMO and Stab sec maturities.
The CBN Official spot rate remained stable at its previous day rate of N305.70/$, with the CBN’s external reserves recorded to have improved by 1.75% to $40.63bn as at 30th January 2018.
The spot rate in the Investors and Exporters’ FX Window appreciated by 0.11% to close at N360.00/$ from N360.39/$.
Rates in the Unofficial market also appreciated by 0.03% to N362.30/$