Funding Rates remain Stable as system liquidity closes positive

Proshare

Friday December 22, 2017/7.00pm/Zedcrest Capital 

Proshare Nigeria Pvt. Ltd.

Bonds

The bond market traded on a relatively quiet note in today’s session, as most traders began to wind up activities for the year.  We however witnessed slight sell on the 2024s, 2034s and 2036s bonds, taking yields slightly higher by 1bp to 13.85%. We expect a quiet trading session in the coming week, but with a slightly bearish bias, as most traders try to stay square ahead of the New Year. We however maintain our bullish sentiments on bonds ahead of the next bond auction to be held in the coming year. 

Proshare Nigeria Pvt. Ltd.

Treasury Bills

The T-bills market traded on relatively flat note, with very minimal trades executed on few maturities. We also witnessed a slowdown in demand for the OMO auction by the CBN today, with a total sale of N95bn out of a total amount of N200bn offered, even as stop rates maintained its continued 5bps decline to 12.95% and 14.75% on the short and medium tenured bills offered. We expect slight buying interests in the T-bills space in the coming week due to the current liquidity surplus in the system and expected inflows from retail FX refunds and OMO T-bill maturities.

Proshare Nigeria Pvt. Ltd.

Money Market

The OBB and OVN rates remained stable to close at 5.67% and 6.33%, with system liquidity estimated to close the week on a positive note of N195bn, as significant inflows from FAAC and OMO maturities helped to ease outflows for OMO auction sales over the course of the week. We expect rates to remain relatively stable in the coming week barring any significant outflows for OMO T-bill or FX sales by the CBN.

 Proshare Nigeria Pvt. Ltd.

FX Market

The CBN Official spot rate remained stable at its previous day rate of N306.15/$. Rates at the Investors and exporters FX window appreciated by 0.14% to close at N361.31/$. Rates at the parallel market however remained stable at N363.50/$. 


Proshare Nigeria Pvt. Ltd.

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

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