October 2, 2024/Coronation Research

Summary

• Market liquidity closed positive at N698.bn on Friday (27, Sept ‘24). Call, overnight, and repo rates closed within the range of 7.5% – 30% as rates in the market tightened.
•  Last week, the average NTB yield increased by +113bps to close at 21.9% w/w. At the latest primary market NTB auction held last week, the CBN offered and allotted N227.5bn worth of NTBs to market participants. The stop rates stood at: 91-day: 17% (previously 17%), 182-day: 17.50% (previously 16.63), and 364-day: 20% (previously 18.59%).
• The average yield for OMO bills rose by +23 bps to close at 23.7% w/w. At the OMO auctions held last week, the CBN offered the sum of N1trn, but allotted N254.9bn worth of OMO bills to market participants. The stop rates stood at; (361-day: 24.3%), and (362-day: 24.36%).
• In the secondary market for FGN bonds, the average yield increased by +9bps to close at 18.8% w/w.
• Meanwhile, in the Eurobond market, the average yield declined by 3bps to close at 9.6%.
• According to S&P Global, the U.S. Manufacturing PMI decreased to 47.3 in September ’24 from 47.9 recorded in August ’24. This marks the lowest reading since June ’23, reflecting a contraction in business activities. PMI services eased to 55.4 in September ’24 from 55.7 in August ’24. Overall, the composite PMI declined to 54.4 in September ’24 from 54.6 in August ’24.

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