July 14, 2022/Coronation Research
Summary
- Opening market liquidity was reported at N222.9bn on Friday (08 July ‘22). Overnight and repo rates closed within a range of 13 – 14%. The average NTB yield increased by +142bps w/w to close at 6.8%. Meanwhile, the average yield for OMO bills increased by +98bps w/w to close at 6.3%.
- As for the secondary market for FGN bonds, the average yield increased by +11bps w/w to close at 11.3%.
- At the Eurobond market, average yield for the sovereigns increased by +18bps w/w to 13.1%.
- According to the US Bureau of Labor Statistics, headline inflation in the US increased to 9.1% y/y in June ‘22 compared with 8.6% y/y recorded in May ’22. Inflationary pressure was significant in the prices of gasoline (59.9% y/y), electricity (13.7% y/y), food (12.2% y/y), new vehicles (11.4% y/y), shelter (5.6% y/y), as well as used cars and trucks (1.7% y/y). Meanwhile, based on data from China’s National Bureau of Statistics, headline inflation increased to 2.5% y/y in June ‘22 compared with 2.1% y/y recorded in May ’22. Inflationary pressure was significant in transportation and communication (8.5% y/y), food prices (2.9% y/y), housing (0.8% y/y) and clothing (0.6% y/y).
For the full Coronation fixed income and exchange rate (CFEX) update, please click here.
