April 16, 2024/Coronation Research
Summary
- Opening market liquidity was reported at N67.4bn on Friday (12, April 2024). Call, overnight, and repo rates closed within the range of 6% – 30% as rates in the money market tightened.
- Last week, the average NTB yield remained unchanged to close at 18.9% w/w.
- The average yield for OMO bills declined by -20bps to close at 18.2% w/w.
- In the secondary market for FGN bonds, the average yield remained unchanged to close at 19.3% w/w.
- Meanwhile, in the Eurobond market, the average yield increased by +10bps to close at 9.7% w/w.
- According to China’s Bureau of Statistics, China’s inflation moderated to 0.1% y/y in March ’24 compared with 0.7% y/y recorded in February ‘24. The deflationary pressure was significant in food prices (-2.7% y/y vs -0.9), non-food inflation (0.7% y/y vs 1.1% y/y) and transport prices (-1.3% y/y vs -0.4% y/y).
- According to the US Bureau of Labor Statistics, U.S. inflation increased to 3.5% y/y in March ’24 from 3.2% y/y recorded in February ’24. This can be partly attributed to upticks in energy costs (+2.1% y/y vs -1.9% y/y), gasoline (+1.3%y/y vs -3.9% y/y), transportation (+10.7% y/y vs +9.9% y/y), in contrast to the steady declines recorded in utility gas service (-3.2% y/y vs – 8.8% y/y), fuel oil (-3.7% y/y vs -5.4%y/y), new vehicles (+2.2% y/y vs +2.6% y/y).
For the full Coronation fixed income and exchange rate (CFEX) update, please click here
