January 7, 2021/Coronation Research
Summary
- Opening market liquidity was reported at N178.4bn on Friday (31 December ‘21). Overnight and repo rates closed within a range of 10-16%. Last week, the average NTB yield declined by -1bps w/w to close at 4.4%. This is due to slowdown in investment activities as the year ended. At the last NTB primary market auction, the CBN offered N52.3bn but allotted N52.8bn worth of NTBs to market participants. The stop rates across two of the three tenors remained unchanged; 91-day: 2.5%, 182-day: 3.5% and 364-day: 4.9% (previously 5.0%). Meanwhile, the average yield for OMO bills increased by 6bp w/w to close at 5.5%.
- As for the secondary market for FGN bonds, the average yield declined by -1bp w/w to close at 11.6%.
- According to the Chinese National Bureau of Statistics (NBS), China’s manufacturing PMI rose slightly to 50.3 points in December ’21, compared with 50.1 points in November ’21. This is the second consecutive month of increase and the highest since July ‘21 (50.4 points). This increase was due to reduced power shortages and the decline in prices of raw materials. Similarly, the non-manufacturing PMI rose to 52.7 points in December ’21 compared with 52.3 points in November. This increase was due to increased activity in the service sector.
For the full Coronation fixed income and exchange rate (CFEX) update, please click here.
