July 2, 2024/Coronation Research

Summary

• Opening market liquidity was reported at N514.2bn on Friday (28, June ‘24). Call, overnight, and repo rates closed within the range of 6% – 25%, as rates in the money market moderated.
• Last week, the average NTB yield increased by +7bps to close at 22.1% w/w. At the latest primary market NTB auction held last week, the CBN offered N228.7bn, but offered N284.2bn worth of NTBs to market participants. The stop rates stood at: 91-day: 16.3%, 182-day: 17.44%, and 364-day: 20.68%.
• The average yield for OMO bills increased by +175bps to close at 23.5% w/w.
• Meanwhile, in the secondary market for FGN bonds, the average yield declined by -5bps to close at 18.8% w/w.
• In the Eurobond market, the average yield declined by -11bps at 10.2% w/w.
• The US Manufacturing PMI rose to 51.7 in June ’24 compared with 51.3 in May ‘24. This growth was largely driven by improved manufacturing activities. Services PMI increased to 55.1 in June ’24 vs 54.8 recorded in May ’24. Overall, the composite PMI increased slightly to 54.6 in June ’24 vs 54.5 in May ’24.

For the full Coronation fixed income and exchange rate (CFEX) update, please click here