August 7, 2024/Coronation Research

Summary

• Opening market liquidity was reported at N655.5bn on Friday (02, Aug ‘24). Call, overnight, and repo rates closed within the range of 8% – 26%, as rates in the money market moderated.
• Last week, the average NTB yield increased by +25bps to close at 25.5% w/w.
• The average yield for OMO bills increased by +32bps to close at 25.3% w/w.
• In the secondary market for FGN bonds, the average yield increased by +32bps to close at 19.8% w/w.
• In the Eurobond market, the average yield increased by +31bps to close at 10.5% w/w.
• Last week, the Bank of England (BOE) reduced its benchmark interest rate by 25bps to 5%. This represents the first monetary policy loosening since March ’20. The BOE emphasized a cautious stance towards further monetary policy loosening until inflation risks diminish.
• According to S&P Global, UK Manufacturing PMI increased to 52.1 in July ’24 from 50.9 in June ’24, indicating the strongest growth in the manufacturing sector since July ’22 due to improved industrial activities. The service PMI rose to 52.5 in July ’24 from 52.1 in June ’24, marking the ninth consecutive month of expansion in the service sector. Overall, the composite PMI increased to 52.8 in July ’24 from 52.3 in June ’24.

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