July 11, 2024/Coronation

Summary

• Opening market liquidity was reported at -N1.4trn on Friday (05, Jul ‘24). Call, overnight, and repo rates closed within the range of 7% – 32%, as rates in the money market tightened.
• Last week, the average NTB yield increased by +69bps to close at 22.8% w/w.
• The average yield for OMO bills increased by +91bps to close at 24.4% w/w.
• Meanwhile, in the secondary market for FGN bonds, the average yield increased by +2bps to close at 18.8% w/w.
• In the Eurobond market, the average yield declined by -10bps to close at 10.1% w/w.
• According to Eurostat, inflation in the Eurozone eased to 2.5% y/y in June ’24 from 2.6% in May ’24. Inflationary pressure was felt across food, alcohol and tobacco (+2.5% y/y vs in June ’24 +2.6% y/y in May ‘24) and energy (+0.2% y/y in June ’24 vs +0.3% y/y May ‘24). Prices for services remained steady at +4.1% y/y in June ’24 and non-energy industrial goods at +0.7% y/y in June ’24.
• The Eurozone Manufacturing PMI moderated to 45.8 in June ’24 as compared with 47.3 in May ’24, reflecting a decline in industrial activities. Services PMI declined marginally to 52.8 in June ’24 vs 53.2 recorded in May ’24. Meanwhile, the composite PMI increased slightly to 50.9 in June ’24 vs 50.8 in May ’24.

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