March 10, 2022/Coronation Research
Summary
- Opening market liquidity was reported at N630.6bn on Friday (04 March ‘22). Overnight and repo rates closed within a range of 13.3-15.0%. Last week, the average NTB yield decreased by -18bps w/w to close at 3.4%. Meanwhile, the average yield for OMO bills decreased by -129bps w/w to close at 3.3%. At last week’s primary market OMO auction, the CBN allotted N30.0bn worth of OMO bills across all three tenors and the stop rates remained unchanged from the previous auction (89-day: 7.0%, 173-day: 8.5%, 348-day: 10.1%).
- As for the secondary market for FGN bonds, the average yield declined by -50bps w/w to close at 10.6%.
- According to the US Department of Labour, the US nonfarm payroll increased by 678,000 in February ‘22 compared with 481,000 recorded in January ‘22. Unemployment rate decreased from 4.0% to 3.8%. Employment growth continued in leisure and hospitality, professional and business services, health care, and construction.
- According to China’s National Bureau of Statistics, manufacturing PMI increased slightly to 50.2 in February ’22 compared with 50.1 recorded in January ’22. In addition, new orders increased to 50.7 compared with 49.3 in January ’22, while production index increased to 50.4 compared with 50.9 in January ’22.
For the full Coronation fixed income and exchange rate (CFEX) update, please click here.
