Report
FREE
N159 billion, Interbank Call rate moderated further to 13.4% (previous: 19%). At the FX Interbank market, the Naira appreciated 50kobo to NGN282.25/USD.On the back of the improvement in system liquidity, T-bills market maintained a bullish trend for the fourth consecutive session with yields down 30bps on average across maturities. Notably, the 218DTM (-185bps), 246DTM (-271bps) and 309DTM (-99bps) recorded the most significant declines in yields, closing at 11.29%, 11.38% and 12.41% respectively. Meanwhile, the DMO released the Q3 bond calendar showing an 9.4% increase in average monthly volume on offer to N117 billion (previous: N107 billion). Notwithstanding, trading in the bond market turned bullish as yields declined 16bps on average across maturities. The 15.10% FGN APR 2017 and 12.1493% FGN JUL 2034 posted the most sizeable yield declines, down 48bps and 11bps to 12.98% and 14.71% respectively.Whilst we note that the volume on offer (as indicated by the bond auction calendar) in Q3’16 is higher than what was recorded in the two earlier quarters, we believe this was more in line with market expectation. Consequently, we expect market sentiment to remain cautiously upbeat.
Nigeria_Fixed Income Daily: Yields moderate as liquidity improves
Market commentary
With system liquidity improving to c.
Provider
Vetiva Capital Management
Vetiva provides clients with independent and unbiased access to analysis and opinion. We keep our clients on the cutting edge of market information and provide up to date market intelligence on quoted companies. Our services allow brokers, investment firms, and asset managers focus their energies on developing investment strategies and client relationships.
Other Reports from Vetiva Capital Management
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.