July 18, 2024/Coronation Research

Summary

• Opening market liquidity was reported at -N663.8bn on Friday (12, Jul ‘24). Call, overnight, and repo rates closed within the range of 9% – 32%, as rates in the money market tightened.
• Last week, the average NTB yield increased by +50bps to close at 23.3% w/w.
• The average yield for OMO bills declined by -20bps to close at 24.2% w/w.
• In the secondary market for FGN bonds, the average yield increased by +50bps to close at 19.3% w/w.
• Meanwhile, in the Eurobond market, the average yield declined by -30bps to close at 9.8% w/w.
• According to China’s Bureau of Statistics, China’s inflation moderated to 0.2% y/y in June ’24 compared with 0.3% y/y recorded in May ‘24. Food prices moderated (-2.1% y/y vs -2% y/y) for the twelfth consecutive month. Meanwhile, prices remained steady across housing (+0.2% y/y vs +0.2% y/y), health (+1.6% y/y vs +1.5% y/y), and education (+1.7% y/y vs +1.7% y/y).
• According to the US Bureau of Labor Statistics, U.S. inflation moderated to 3% y/y in June ’24 from 3.3% y/y recorded in May ’24. This reading marks the lowest inflation rate since February ’24. Prices eased for energy cost (+1% y/y vs +3.7% y/y), shelter (+5.2% y/y vs +5.4% y/y), and transportation (+9.4% y/y vs +10.5% y/y), while remaining steady for apparel (+0.8% y/y vs 1.3% y/y). Meanwhile, food prices rose by +2.2% y/y vs +2.1% y/y.

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