September 18, 2024/Coronation Research

Summary

• Open market liquidity was reported at -N503bn on Friday (13, Sept ‘24). Call, overnight, and repo rates closed within the range of 7% – 31.7% as rates in the market moderated.
• Last week, the average NTB yield increased by +62bps to close at 20.3% w/w. At the latest primary market NTB auction held last week, the CBN offered and allotted N161.9bn worth of NTBs to market participants. The stop rates stood at: 91-day: 16.63% (previously 17%) 182-day: 17% (previously 17.5), and 364-day: 18.59% (previously 18.94%).
• The average yield for OMO bills increased by 92bps to close at 23.6% w/w.
• In the secondary market for FGN bonds, the average yield increased by +15bps to close at 18.7% w/w.
• In the Eurobond market, the average yield increased by +4bps to close at 10% w/w.
• Last week, the ECB voted unanimously to cut its key policy rates. The main refinancing operations rate was lowered down to 3.65% vs 4.25%, the deposit facility rate to 3.50% vs 3.75%, and the marginal lending rate to 3.90% vs 4.50%. The ECB reaffirmed its dedication to achieving its 2% inflation target as risks to the inflation outlook ease.

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