February 9, 2022/Coronation Research

Summary

• Opening market liquidity was reported at N630.5bn on Friday (04 February ‘22). Overnight and repo rates closed within a range of 11-13.5%. Last week, the average NTB yield increased by 3bp w/w to close at 4.4%. Meanwhile, the average yield for OMO bills increased by 26bps w/w to close at 5.5%. 
• As for the secondary market for FGN bonds, the average yield declined by -1bps w/w to close at 11.6%. 
• According to the US Department of Labour, the US nonfarm payroll increased by 467,000 in January ‘22 compared with 199,000 recorded in December ‘21. However, the unemployment rate increased from 3.9% to 4.0%. Employment growth continued in leisure and hospitality, professional and business services, retail trade, transportation and warehousing.
• Eurozone inflation rose to 5.1% y/y in January ’22 compared with 5.0% y/y recorded in December ’21. The headline inflation rate remains well above the European Central Bank (ECB) target of 2% and energy continues to record the biggest price increase (28.6% y/y). This is followed by food, alcohol & tobacco (3.6% y/y), services (2.4% y/y) and non-energy industrial goods (2.3% y/y). At its last meeting, the ECB left key interest rates unchanged.

For the full Coronation fixed income and exchange rate (CFEX) update, please click here.