
June 6, 2024/Coronation Research
Summary
- Opening market liquidity was reported at N80.7bn on Friday (31, May ‘24). Call, overnight, and repo rates closed within the range of 5% – 30%, as rates in the money market moderated.
- Last week, the average NTB yield declined by -30bps to close at 21.7% w/w.
- The average yield for OMO bills increased by +60bps to close at 21.4% w/w. At the OMO auction held last week, the CBN offered and allotted N500bn worth of OMO bills to market participants. The stop rates for the two tenors stood at; (174-day: 19.64%), and (363-day: 22.34%).
- In the secondary market for FGN bonds, the average yield remained unchanged at 18.7% w/w.
- In the Eurobond market, the average yield remained unchanged at 9.9% w/w.
- According to Eurostat, Eurozone inflation increased to 2.6% y/y in May ’24 vs 2.4% in April ’24. This reading marks the highest since January ’24. Inflationary pressure was felt in energy (+0.3% y/y vs -0.6% y/y) and services (+4.1% y/y vs +3.7% y/y). Meanwhile, prices moderated for food, alcohol and tobacco (+2.6% y/y vs +2.8% y/y), non-energy industrial goods (+0.8% y/y vs +0.9% y/y). We note that core inflation increased to +2.9% in May vs +2.7% in April.
- The Eurozone manufacturing PMI increased to 47.4 in May ’24 from 45.7 in April ’24. The services PMI held steady at 53.3 in May ’24. Overall, the composite PMI rose to 52.3 in May from 51.7 in April.
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