Culled—Proshare
13/12/2017/Zedcrest Capital
KEY INDICATORS
| Inflation | 15.91% | Declined by 0.07% in October from 15.98% in September 2017 |
| MPR | 14.00% | Left unchanged at 14.00% at the MPC meeting of November 2017 |
| External Reserves | $36.43billion | Accreted 1.94% as at 11th December from $36.01 as at 8th December 2017 |
| Brent Crude | $63.53pb | Fell by 2.04% from $64.85pb on 12th December 2017 |
Bonds
The bond market opened today on a strong note with significant buys on the 2027 and 2037 bonds pushing yields on the bonds as low as 13.53% (114.25) and 13.46% (119.00) respectively. We however witnessed a sharp decline on the 2027s bonds to 13.40% (115.00) towards the close of market as news of significant over subscription at the bond auction filtered in. Results from the bond auction showed that the DMO sold only N24.77bn and N52.81bn of the 2021 and 2027 bonds despite the signification oversubscription of N89.95bn and N190bn respectively. Rates consequently cleared at 13.19% and 13.21% on the 2021 and 2027 bonds. We expect rates to trade down to sub-13% levels tomorrow as some market players would be looking to cover their lost auction bids.
| Table 1: Benchmark FGN Bond Yields | |||
| Description | Bid (%) | Offer (%) | Day Change (%) |
| 16.00 29-Jun-19 | 13.47 | 13.40 | (0.14) |
| 15.54 13-Feb-20 | 13.61 | 13.54 | (0.03) |
| 14.50 15-Jul-21 | 13.76 | 13.69 | (0.22) |
| 16.39 27-Jan-22 | 13.72 | 13.65 | (0.05) |
| 14.20 14-Mar-24 | 13.61 | 13.54 | (0.37) |
| 12.50 22-Jan-26 | 13.87 | 13.80 | (0.13) |
| 16.29 17-Mar-27 | 13.64 | 13.57 | (0.28) |
| 12.15 18-Jul-34 | 13.68 | 13.61 | (0.19) |
| 12.40 18-Mar-36 | 13.62 | 13.55 | (0.31) |
| 16.25 18-Apr-37 | 13.59 | 13.52 | (0.15) |
Source: Zedcrest Dealing Desk
