March 4, 2022/Coronation Research
Summary
- Opening market liquidity was reported at N77.03bn on Friday (25 February ‘22). Overnight and repo rates closed within a range of 14-15.0%. Last week, the average NTB yield decreased by -57bps w/w to close at 3.6%. At last week’s primary market NTB auction, the CBN offered N115.3bn but allotted N258.01bn worth of NTBs to market participants. The stop rates changed across two of the three tenors; 91-day: 2.2% (previously 2.5%), 182-day: 3.3%, 364-day: 4.4% (previously 5.2%). Meanwhile, the average yield for OMO bills decreased by -68bps w/w to close at 4.6%.
- As for the secondary market for FGN bonds, the average yield declined by -13bps w/w to close at 11.1%.
- According to IHS Markit, the US Services PMI increased from 51.2 recorded in January ’22 to 56.7 in February ’22. This can be partly attributed to the government’s relaxation of COVID-19 measures previously introduced to combat the omicron variant of the pandemic. The Manufacturing PMI increased to 57.5 in February ‘22 compared to the 55.5 recorded in the previous month. Overall, the Composite PMI increased to 56.0 in February ’22 from 51.1 recorded in January ’22.
For the full Coronation fixed income and exchange rate (CFEX) update, please click here.
