June 10, 2022/Coronation Research
Summary
- Opening market liquidity was reported at N355.8bn on Friday (03 June ‘22). Overnight and repo rates closed within a range of 6 – 8%. The average NTB yield increased by +13bps w/w to close at 3.9%. Meanwhile, the average yield for OMO bills remained unchanged (from the previous week) at 4.4%. At last week’s OMO auction, the CBN offered and allotted N40bn worth of OMO bills to market participants and maintained stop rates across the three tenors (103-day: 7.0%, 180-day: 8.5%, and 365-day: 10.1%).
- As for the secondary market for FGN bonds, the average yield declined by -6bps w/w to close at 11.2%.
- At the Eurobond market, yields increased for all sovereigns under our coverage. For the sovereigns, the average yield increased by +85bps w/w to 11.6%.
- According to China’s National Bureau of Statistics, manufacturing PMI increased to 49.6 in May ’22, compared with 47.4 recorded in April ’22. Similarly, the non-manufacturing PMI increased to 47.8 in May compared with 41.9 in April ‘22. The expansion recorded across both indices reflects improvement in the manufacturing sector, as COVID-19 restrictions and lockdowns have eased in major cities, as well as the government’s efforts to boost consumer spending and strengthen supply chains.
For the full Coronation fixed income and exchange rate (CFEX) update, please click here.
