Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In Proshare - RSS Feed

The Nigeria Bond Watch – Review and Outlook @050916

Bonds
1076 VIEWS
Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In
Proshare

Monday, September 05, 2016 1:00pm /DLM Research

Download Full Report Here

ANALYSIS
During the review week, activities in the domestic fixed income market were influenced by: 1) Treasury and OMO bills auctions and redemption by the CBN; 2) The release of 2nd Quarter GDP & Inflation figures by the National Bureau of Statistics (NBS).

At the treasury bills auction, the DMO offered and sold N212.85billion T.bills: 91D (N45.85billion), 182D (N62.00billion) & 364D (N105.00billion) at marginal rates of 14.39%, 17.50% & 18.42% respectively. Subscription level stood at N502.55billion (236%) of volume offered.

At the OMO auctions, the CBN offered N280.00billion OMO bills with tenors ranging between 195day to 350day but sold N593.05billion at marginal rate of 18.00%. Subscription stood at N593.05billion, 211% of amount offered.

Subscriptions at the auctions were high due to elevated system liquidity stemming from treasury and OMO bills redemption worth N212.85billion and N129.10billion respectively.

It was a lacklustre trading sessions in the fixed income OTC market last week as the release of higher inflation figure (17.10%) & negative GDP figure (-2.06%) by the NBS dampened investors interest with active trades recorded only on the extremes of the curve. Consequently, these negative results pushed yields by an average of 20bp as investors repriced their fixed income assets to reflect risk premiums

This week, OMO bills worth N293.76billion are expected to be redeemed. With anticipated elevation in system liquidity via OMO bills redemption, the fixed income market is expected to be active with a reversal in yields trend to a southward direction, barring further OMO auction(s) from the CBN.

Download Full Report Here 

Related News
1.     The Nigeria Bond Watch – Review and Outlook @290816

2.      The Nigeria Bond watch - Review and Outlook @082216

3.      Rise in Yields at FGN Bond Auction

4.      Summary of Auction Results for August 2016

5.      The Nigeria Bond watch - Review and Outlook @081516

6.      ICM Return in Line With Debt Strategy

7.      Invest in FGN Monthly Bond Auction - August 2016

8.      An Auction to Please the DMO

9.     Summary of Auction Results for July 2016

10.      The Nigeria Bond Watch - Review and Outlook @071116

11.  Invest in FGN Monthly Bond Auction – July 2016

12.   Challenge of the DMO’s Issuance Calendar

13.  Expect to see a pick-up in FGN external borrowing

14.  Summary of Auction Results for June 2016

15.  Invest in FGN Monthly Bond Auction – June 2016

16.   Summary of Auction Results for May 2016

17.  Invest in FGN Monthly Bond Auction – May 2016

18.   Summary of Auction Results for April 2016

19.  Invest in FGN Monthly Bond Auction – April 2016

20.  Summary of Auction Results for March 2016

21. CBN Publishes Nigerian Treasury Bills Issue Programme for Q2 2016

22.  Invest in FGN Monthly Bond Auction – March 2016

23. Some statistical cheer from the DMO over Nigeria’s modest indebtedness – Feb 11, 2016

24. Invest in FGN Monthly Bond Auction – February 2016

 

Related News