FeaturedMarket Update

FIXED INCOME MARKET NEWSLETTER AS AT 5TH JULY 2021 

 

MACRO ECONOMIC INDICES
 Inflation 17.93%
MPR 11.50%
Brent Crude $75.8bp
External Reserves $33.85bn
Foreign Exchange N410.16

 

FOREIGN EXCHANGE MARKET
Tenor Current Rate ($/N) Previous  Rate ($/N)
CBN Official 410.16 410.16
CBN SMIS Window 380.69 380.69
I&E FX Window 411.13 411.25
Black Market(cash) 503.00 N502.00

 

Foreign exchange Market

At the I&E FX market, Naira appreciated by 0.03 % as the dollar closed at ₦411.13 as against the last close of ₦411.25. Most participants maintained bids between ₦394.00 and ₦420.95 per dollar.

 

Central Bank of Nigeria  / Interbank Rates

Date Naira/Dollar (NGN/USD) Naira/Pound (NGN/GBP) Naira/Euro (NGN/EUR)
July 5th, 2021 410.16 563.72 484.97
July 2nd, 2021 410.16 566.26 487.14
July 1st, 2021 410.16 568.85 487.84
June 30th, 2021 410.17 569.7 488.56

 

Daily Foreign Exchange Rates (Dollar / Pounds / Euro )

Date Naira/Dollar (NGN/USD) Naira/Pound (NGN/GBP) Naira/Euro (NGN/EUR)
  Buy/Sell Buy/Sell Buy/Sell
July 5th, 2021 495 / 503 705 / 710 588 / 595
July 2nd, 2021 498 / 503 700 / 710 590 / 595
July 1st, 2021 498 / 503 705 / 710 590 / 598
June 30th, 2021 498 / 502 705 / 710 590 / 595

 

TREASURY BILLS  PRIMARY MARKET AUCTION  (PMA).

Tenor 30/6/2021
current Stop rate
 9/6/2021
Previous stop rate
91 2.50% 2.50%
182 3.50% 3.50%
364 9.15% 9.64%

 

The secondary market treasury bills experienced a sell off negative note with average yield across maturities  to close at 6.61 % from 6.57 % on the previous day. The average yields across short, mid maturities remained unchanged at 4.34 % and 5.46 %. while, OMO bills market  closed at 9.93 % as against the last close of 9.92 % . Selling pressure was seen across the mid  maturities , the average yield for  short term maturities closed flat at 9.30%. High purchase order was seen on 12-Oct-21 maturity .

BENCHMARK SECONDARY MARKET TREASURY BILLS

Tenor Maturity  Rate (%)
101 14-Oct-21 5.16
115 28-Oct-21 5.37
129 11-Nov-21 5.58
143 25-Nov-21 5.79
192 13-Jan-22 6.52
206 27-Jan-22 6.73
220 10-Feb-22 6.94
234 24-Feb-22 7.15
248 10-Mar-22 7.36
255 17-Mar-22 7.46
269 31-Mar-22 8.50
297 28-Apr-22 8.09
311 12-May-22 8.30
325 26-May-22 8.61
339 9-Jun-22 9.00


MONEY MARKET

As the start of the week, the overnight rate decreased by 1.75% to close at 10.75 % as against the last close of 12.50 %  and the Open Buy Back rate also decreased by 1.75% to close at 10.25 %  compared to 12.00 %  on the previous day.

We expect the money market rates to remain same levels in the coming days in the absence of no major inflow.

Tenor Rate (%)
OBB 10.25
O/N 10.75

 

PREVIOUS FGN BOND PMA AUCTION RESULT

Auction Date 10 YR 15YR 25YR 30YR
23-Jun-21 12.74% 13.50% 0 13.70%
19-May-21 13.10% 14.00% 0 14.20%
21-Apr-21 12.25% 13.34% 13.85% 0
24-Mar-21 10.50% 11.50% 12.00% 0


FGN BOND MARKET YIELD CURVE

FGN bonds secondary market closed on a positive note , as the average bond yield across the curve cleared lower by 1 basis point to close at 9.61 % from 9.62 % on the previous day. Average yields across short tenor and long tenor of the curve declined by 1 basis point each. However, the average yield across the medium tenor of the curve expanded by 4 bps. The 18-APR-2037 maturity bond was the best performer with a decline in yield of 13 bps, while the 18-JUL-2034 maturity bond was the worst performer with an increase in yield of 12 bps.

 

FGN BENCHMARK BOND

Description Coupon (%) Maturity Date TTM (Yrs) Yield (%) Closing Price
14.50 15-JUL-2021 14.50 15-Jul-21 0.03 3.82 100.29
16.39 27-JAN-2022 16.39 27-Jan-22 0.56 6.99 105.07
12.75 27-APR-2023 12.75 27-Apr-23 1.81 10.93 102.88
14.20 14-MAR-2024 14.20 14-Mar-24 2.69 11.22 106.73
13.53 23-MAR-2025 13.53 23-Mar-25 3.72 11.54 105.82
12.50 22-JAN-2026 12.50 22-Jan-26 4.55 11.81 102.35
16.2884 17-MAR-2027 16.29 17-Mar-27 5.70 12.18 116.48
13.98 23-FEB-2028 13.98 23-Feb-28 6.64 12.21 107.85
15.00 28-NOV-2028 15.00 28-Nov-28 7.40 12.23 113.19
14.55 26-APR-2029 14.55 26-Apr-29 7.81 12.24 111.34
12.49 22-MAY-2029 12.49 22-May-29 7.88 12.25 101.18
8.50 20-NOV-2029 8.50 20-Nov-29 8.38 12.26 80.62
10.00 23-JUL-2030 10.00 23-Jul-30 9.05 12.28 87.73
12.1493 18-JUL-2034 12.15 18-Jul-34 13.04 12.40 98.39
12.50 27-MAR-2035 12.50 27-Mar-35 13.73 12.82 97.91
12.40 18-MAR-2036 12.40 18-Mar-36 14.70 12.74 97.69
16.2499 18-APR-2037 16.25 18-Apr-37 15.79 12.77 123.37
9.80 24-JUL-2045 9.80 24-Jul-45 24.05 12.93 76.98
14.80 26-APR-2049 14.80 26-Apr-49 27.81 13.00 113.37
12.98 27-MAR-2050 12.98 27-Mar-50 28.73 13.07 99.29


FIRS EXTENDS THE FILING DEADLINE FOR INCOME TAX RETURNS BY ONE MONTH

The Federal Inland Revenue Service (FIRS) has issued a public notice (the Public Notice) to extend by one month, the deadline for filing the income tax returns of companies whose returns were due on 30 June 2021; the new due date of filing such income tax returns is now 31 July 2021.

Local Currency Trades N411.13/$1 At I&E

The local currency appreciated against the US Dollar on Monday by 12 kobo or 0.03 per cent to begin the new week in the green territory at the Investors and Exporters (I&E) segment of the foreign exchange (forex) market.The Nigerian currency was traded at N411.13/$1 at the I$E FX window yesterday in contrast to N411.25/$1 it ended at the previous session.The strengthening of the Naira was boosted during the session by a decline in the demand for FX by customers as well as a boost in FX liquidity.Local Currency Trades N411.13/$1 At I&E

Ghana Mulls Africas First Social Bonds With $2 Billion Sale

Ghana is planning to issue green and social bonds of up to $2 billion by November, which would make it the first African country to sell debt to fund development programs. The West African economy, which is planning to borrow up to $5 billion on international markets this year, would use the proceeds from these sustainable bonds to refinance debt used for social and environmental projects and pay for educational or health, Ghanaian Finance Minister Ken Ofori-Atta said in an interview in the capital, Accra.The expectation is that the bonds will be issued in the fall and the maximum can be $2 billion,” after Ghana already sold $3.03 billion in March out of the $5 billion for which it has budget approval, Ofori-Atta said. Out of the total, $3.5 billion will be used to refinance debt already raised. “Our actual new debt will be $1.5 billion,” he said.

Ghana would be pioneering social bonds in Africa, seizing on an instrument that’s boomed since the coronavirus pandemic. Still, only a few sovereigns have sold them so far, including Chile and Ecuador. The country will use the proceeds to forge ahead with a free secondary-school initiative started in 2017 among other programs, despite having recorded its lowest economic growth rate in 37 years in 2020.

By: Idialu Judith; Zock capital and Investment LLC,
0805 598 0595

SOURCE:

DISCLAIMER: This publication is strictly for information purposes only for Zock capital and invest  LLC  and its employees take no responsibility or liability as to the accuracy and completeness of the information.
For further ./enquiries/information on this publication, please contact Research and Economic Intelligence .

Comment here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

FeaturedMarket Update

FIXED INCOME MARKET NEWSLETTER AS AT 5TH JULY 2021 

 

MACRO ECONOMIC INDICES
 Inflation 17.93%
MPR 11.50%
Brent Crude $75.8bp
External Reserves $33.85bn
Foreign Exchange N410.16

 

FOREIGN EXCHANGE MARKET
Tenor Current Rate ($/N) Previous  Rate ($/N)
CBN Official 410.16 410.16
CBN SMIS Window 380.69 380.69
I&E FX Window 411.13 411.25
Black Market(cash) 503.00 N502.00

 

Foreign exchange Market

At the I&E FX market, Naira appreciated by 0.03 % as the dollar closed at ₦411.13 as against the last close of ₦411.25. Most participants maintained bids between ₦394.00 and ₦420.95 per dollar.

 

Central Bank of Nigeria  / Interbank Rates

Date Naira/Dollar (NGN/USD) Naira/Pound (NGN/GBP) Naira/Euro (NGN/EUR)
July 5th, 2021 410.16 563.72 484.97
July 2nd, 2021 410.16 566.26 487.14
July 1st, 2021 410.16 568.85 487.84
June 30th, 2021 410.17 569.7 488.56

 

Daily Foreign Exchange Rates (Dollar / Pounds / Euro )

Date Naira/Dollar (NGN/USD) Naira/Pound (NGN/GBP) Naira/Euro (NGN/EUR)
  Buy/Sell Buy/Sell Buy/Sell
July 5th, 2021 495 / 503 705 / 710 588 / 595
July 2nd, 2021 498 / 503 700 / 710 590 / 595
July 1st, 2021 498 / 503 705 / 710 590 / 598
June 30th, 2021 498 / 502 705 / 710 590 / 595

 

TREASURY BILLS  PRIMARY MARKET AUCTION  (PMA).

Tenor 30/6/2021
current Stop rate
 9/6/2021
Previous stop rate
91 2.50% 2.50%
182 3.50% 3.50%
364 9.15% 9.64%

 

The secondary market treasury bills experienced a sell off negative note with average yield across maturities  to close at 6.61 % from 6.57 % on the previous day. The average yields across short, mid maturities remained unchanged at 4.34 % and 5.46 %. while, OMO bills market  closed at 9.93 % as against the last close of 9.92 % . Selling pressure was seen across the mid  maturities , the average yield for  short term maturities closed flat at 9.30%. High purchase order was seen on 12-Oct-21 maturity .

BENCHMARK SECONDARY MARKET TREASURY BILLS

Tenor Maturity  Rate (%)
101 14-Oct-21 5.16
115 28-Oct-21 5.37
129 11-Nov-21 5.58
143 25-Nov-21 5.79
192 13-Jan-22 6.52
206 27-Jan-22 6.73
220 10-Feb-22 6.94
234 24-Feb-22 7.15
248 10-Mar-22 7.36
255 17-Mar-22 7.46
269 31-Mar-22 8.50
297 28-Apr-22 8.09
311 12-May-22 8.30
325 26-May-22 8.61
339 9-Jun-22 9.00


MONEY MARKET

As the start of the week, the overnight rate decreased by 1.75% to close at 10.75 % as against the last close of 12.50 %  and the Open Buy Back rate also decreased by 1.75% to close at 10.25 %  compared to 12.00 %  on the previous day.

We expect the money market rates to remain same levels in the coming days in the absence of no major inflow.

Tenor Rate (%)
OBB 10.25
O/N 10.75

 

PREVIOUS FGN BOND PMA AUCTION RESULT

Auction Date 10 YR 15YR 25YR 30YR
23-Jun-21 12.74% 13.50% 0 13.70%
19-May-21 13.10% 14.00% 0 14.20%
21-Apr-21 12.25% 13.34% 13.85% 0
24-Mar-21 10.50% 11.50% 12.00% 0


FGN BOND MARKET YIELD CURVE

FGN bonds secondary market closed on a positive note , as the average bond yield across the curve cleared lower by 1 basis point to close at 9.61 % from 9.62 % on the previous day. Average yields across short tenor and long tenor of the curve declined by 1 basis point each. However, the average yield across the medium tenor of the curve expanded by 4 bps. The 18-APR-2037 maturity bond was the best performer with a decline in yield of 13 bps, while the 18-JUL-2034 maturity bond was the worst performer with an increase in yield of 12 bps.

 

FGN BENCHMARK BOND

Description Coupon (%) Maturity Date TTM (Yrs) Yield (%) Closing Price
14.50 15-JUL-2021 14.50 15-Jul-21 0.03 3.82 100.29
16.39 27-JAN-2022 16.39 27-Jan-22 0.56 6.99 105.07
12.75 27-APR-2023 12.75 27-Apr-23 1.81 10.93 102.88
14.20 14-MAR-2024 14.20 14-Mar-24 2.69 11.22 106.73
13.53 23-MAR-2025 13.53 23-Mar-25 3.72 11.54 105.82
12.50 22-JAN-2026 12.50 22-Jan-26 4.55 11.81 102.35
16.2884 17-MAR-2027 16.29 17-Mar-27 5.70 12.18 116.48
13.98 23-FEB-2028 13.98 23-Feb-28 6.64 12.21 107.85
15.00 28-NOV-2028 15.00 28-Nov-28 7.40 12.23 113.19
14.55 26-APR-2029 14.55 26-Apr-29 7.81 12.24 111.34
12.49 22-MAY-2029 12.49 22-May-29 7.88 12.25 101.18
8.50 20-NOV-2029 8.50 20-Nov-29 8.38 12.26 80.62
10.00 23-JUL-2030 10.00 23-Jul-30 9.05 12.28 87.73
12.1493 18-JUL-2034 12.15 18-Jul-34 13.04 12.40 98.39
12.50 27-MAR-2035 12.50 27-Mar-35 13.73 12.82 97.91
12.40 18-MAR-2036 12.40 18-Mar-36 14.70 12.74 97.69
16.2499 18-APR-2037 16.25 18-Apr-37 15.79 12.77 123.37
9.80 24-JUL-2045 9.80 24-Jul-45 24.05 12.93 76.98
14.80 26-APR-2049 14.80 26-Apr-49 27.81 13.00 113.37
12.98 27-MAR-2050 12.98 27-Mar-50 28.73 13.07 99.29


FIRS EXTENDS THE FILING DEADLINE FOR INCOME TAX RETURNS BY ONE MONTH

The Federal Inland Revenue Service (FIRS) has issued a public notice (the Public Notice) to extend by one month, the deadline for filing the income tax returns of companies whose returns were due on 30 June 2021; the new due date of filing such income tax returns is now 31 July 2021.

Local Currency Trades N411.13/$1 At I&E

The local currency appreciated against the US Dollar on Monday by 12 kobo or 0.03 per cent to begin the new week in the green territory at the Investors and Exporters (I&E) segment of the foreign exchange (forex) market.The Nigerian currency was traded at N411.13/$1 at the I$E FX window yesterday in contrast to N411.25/$1 it ended at the previous session.The strengthening of the Naira was boosted during the session by a decline in the demand for FX by customers as well as a boost in FX liquidity.Local Currency Trades N411.13/$1 At I&E

Ghana Mulls Africas First Social Bonds With $2 Billion Sale

Ghana is planning to issue green and social bonds of up to $2 billion by November, which would make it the first African country to sell debt to fund development programs. The West African economy, which is planning to borrow up to $5 billion on international markets this year, would use the proceeds from these sustainable bonds to refinance debt used for social and environmental projects and pay for educational or health, Ghanaian Finance Minister Ken Ofori-Atta said in an interview in the capital, Accra.The expectation is that the bonds will be issued in the fall and the maximum can be $2 billion,” after Ghana already sold $3.03 billion in March out of the $5 billion for which it has budget approval, Ofori-Atta said. Out of the total, $3.5 billion will be used to refinance debt already raised. “Our actual new debt will be $1.5 billion,” he said.

Ghana would be pioneering social bonds in Africa, seizing on an instrument that’s boomed since the coronavirus pandemic. Still, only a few sovereigns have sold them so far, including Chile and Ecuador. The country will use the proceeds to forge ahead with a free secondary-school initiative started in 2017 among other programs, despite having recorded its lowest economic growth rate in 37 years in 2020.

By: Idialu Judith; Zock capital and Investment LLC,
0805 598 0595

SOURCE:

DISCLAIMER: This publication is strictly for information purposes only for Zock capital and invest  LLC  and its employees take no responsibility or liability as to the accuracy and completeness of the information.
For further ./enquiries/information on this publication, please contact Research and Economic Intelligence .

Comment here

This site uses Akismet to reduce spam. Learn how your comment data is processed.