January 11. 2022/Coronation Research
Summary
- Opening market liquidity was reported at N253.7bn on Friday (07 January ‘22). Overnight and repo rates closed within a range of 14-20.0%. Last week, the average NTB yield declined by -1bp w/w to close at 4.4%. Meanwhile, the average yield for OMO bills declined by -1bp w/w to close at 5.5%.
- As for the secondary market for FGN bonds, the average yield increased by 4bps w/w to close at 11.6%.
- According to the US Bureau of Labour Statistics, the US nonfarm payroll rose by a total of 199,000 in December ‘21 compared with 210,000 recorded in November ‘21. The unemployment rate declined to 3.9% from 4.2% recorded in November. Employment maintained an upward trend in professional and business services, leisure and hospitality, construction and manufacturing as well as transportation and warehousing.
- According to Eurostat, Eurozone inflation rose to 5.0% y/y in December ’21 compared with 4.9% y/y recorded in November ’21. Inflationary pressure was significant in the cost of energy (26.0% y/y), food, alcohol & tobacco (3.2% y/y), non-energy industrial goods (2.9% y/y) and services (2.4% y/y).
For the full Coronation fixed income and exchange rate (CFEX) update, please click here.
