Summary

• Opening market liquidity was reported at -N280.6bn on Friday (25 August 23). Call, overnight, and repo rates closed within a range of 5% – 25% as system liquidity tightened.
• The average NTB yield decreased by -21bps to close at 8.2% w/w. At the latest primary market NTB auction held last week Wednesday, the CBN offered and allotted N303.2bn worth of NTBs to market participants. The stop rates changed across the three tenors; 91-day: 5.19% (previously 5.00%), 182-day: 8.00% (previously 5.90%), 364-day: 13.97% (previously 9.80% y/y).
• Meanwhile, the average yield for OMO bills remained unchanged w/w to close at 11.2%.
• As for the secondary market for FGN bonds, the average yield increased by +27bps to close at 14.1% w/w.
• In the Eurobond market, the average yield decreased by -28bps to close at 10.9% w/w.
• According to S&P Global, US manufacturing PMI declined to 47.0 in August ’23 from 49.3 recorded in July ’23. This is the fourth consecutive contraction and it was primarily driven by weakened consumer demand. Meanwhile, US services PMI declined to 51 in August ‘23 from 52.1 recorded in July ’23. Overall, the composite PMI declined to 50.4 in August ’23 from 52.0 recorded in July ’23. Looking ahead, business confidence is expected to remain deflated given weak consumption patterns as well as global uncertainties.
• Eurozone Manufacturing PMI increased to 43.7 in August ’23 compared with 42.7 in July ’23. Services PMI also recorded its first slip below 50 (since December ’22). It declined to 48.3 in August ’23 from 50.9 in July ’23. Overall, composite PMI declined to 47 from 48.6 recorded in July ’23.