September 24, 2024/Coronation Report

Summary

• Market liquidity closed negative at -N272bn on Friday (20, Sept ‘24). Call, overnight, and repo rates closed within the range of 7.8% – 29.9% as rates in the market moderated.
•  Last week, the average NTB yield increased by +51bps to close at 20.8% w/w.
• The average yield for OMO bills declined by 21bps to close at 23.4% w/w.
• In the secondary market for FGN bonds, the average yield decreased by 19bps to close at 18.7% w/w.
• In the Eurobond market, the average yield declined by 35bps to close at 9.6%.
• The United States Federal Open Market Committee (FOMC) voted unanimously to cut its target range for the Federal funds rate by -50bps to 4.75%-5.00% at its September meeting. This marks the first rate cut since March ’20, largely supported by improved confidence as inflation moves towards its 2% target.
• Last week, the Bank of England (BOE) held its benchmark policy rate steady at 5%. We anticipate that the committee will adopt a cautious attitude toward monetary easing, given the prevailing upside risks to inflation.

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