July 26, 2024/Coronation Research

Summary

• Opening market liquidity was reported at -N379.5bn on Friday (19, 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 +156bps to close at 24.9% w/w.
• The average yield for OMO bills increased by +7bps to close at 24.3% w/w.
• In the secondary market for FGN bonds, the average yield increased by +15bps to close at 19.4% w/w.
• In the Eurobond market, the average yield increased by +31bps to close at 10.1% w/w.
• According to the Office of National Statistics, UK headline inflation remained steady at 2% y/y in June ’24. Inflationary pressures persisted in restaurants and hotels (+6.2% y/y vs +5.8% y/y) and transport (+0.9% y/y vs 0.5% y/y). Meanwhile, prices slowed for clothing and footwear (+1.6% y/y vs 3% y/y) and food and non-alcoholic beverages (1.5% y/y vs 1.7%y/y). Prices remained steady for services and recreation and culture at 5.7% and 3.9% respectively.
• According to China’s Bureau of Statistics, GDP increased by +4.7% y/y in Q2 ’24, compared with +5.3% y/y in Q1 ’24. This marks the lowest y/y growth recorded since Q1 ’23 and can be partly attributed to sluggish domestic demand amid prolonged slowdown in the property sector.

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