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

The Nigeria Bond Watch - Review and Outlook @140916

Bonds
1337 VIEWS
Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In
Proshare

Wednesday, September 14, 2016 12:20pm /DLM Research

Download Full Report Here

ANALYSIS

During the review week, the Nigerian fixed income OTC market was influenced by: 1) the release of September 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 N190.00billion with tenors ranging between 259day and 357day but sold N249.47billion at marginal rates ranging between 18.00% - 18.50%. Subscription levels stood at N254.49billion (134%) of total volume offered. In our opinion, the high subscription was due to inflow of c.N293.76billion recorded from OMO bills redemption.


The FGN OTC bond market experienced mixed reactions last week as most trading sessions swayed in relation to system liquidity levels. On a week on week comparism, yields hovered around the levels it traded the previous week.


The DMO is expected to re-open N40.00billion, N40.00billion 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 N96.55billion will be offered (91day: N48.10billion and 182day: N48.45billion whilst anticipating the redemption of treasury bills worth N96.55billion.

We expect an upward movement in yields this week on the back of anticipated sell offs as system liquidity thins out whilst dealers take positions ahead of the auction.

Download Full Report Here 

Related News
1.      The Nigeria Bond Watch – Review and Outlook @050916
2.    
The Nigeria Bond Watch – Review and Outlook @290816
3
.     
The Nigeria Bond watch - Review and Outlook @082216
4.     
Rise in Yields at FGN Bond Auction
5
.     
Summary of Auction Results for August 2016
6.     
The Nigeria Bond watch - Review and Outlook @081516
7.     
ICM Return in Line With Debt Strategy
8.     
Invest in FGN Monthly Bond Auction - August 2016
9
.     
An Auction to Please the DMO
10.    
Summary of Auction Results for July 2016
11.     
The Nigeria Bond Watch - Review and Outlook @071116
12. 
Invest in FGN Monthly Bond Auction – July 2016
13.  
Challenge of the DMO’s Issuance Calendar
14. 
Expect to see a pick-up in FGN external borrowing
15. 
Summary of Auction Results for June 2016

Related News