November 18, 2024/Coronation Research
Summary
- Market liquidity closed positive at N396.7bn on Friday (15 Nov ‘24). Call, overnight, and repo rates closed within the range of 6.9% – 26.9% as rates in the market moderated.
- In the secondary market, average T-bill’s yield rose by +19bps to close at 24.2% p.a.
- The average yield for OMO bills increased by 5bps to 26.4% p.a.
- In the FGN bond market, average yields increased broadly across the spectrum by 2bps to 19.4% p.a. At the short end of the curve, average yield increased 2bps to 20.5%, while at the mid-point of the curve average yield rose by 22bps to 19.4%. At the long end of the curve, average yields rose by 14bps to 17.7%.
- In the Eurobond market, the average yield increased by 34bps to 9.7% from 9.3% the previous week.
- According to the Bureau of Labor Statistics, US inflation rose to 2.6% in October ’24 from 2.4% in September ’24, marking the first increase since April ’24. This uptick was partly offset by a decline in energy costs (-4.9% y/y vs 6.8% y/y) but inflation in other areas was strong. Inflation eased for food (2.1% y/y vs 2.3% y/y) and transportation (8.2% y/y vs 8.5% y/y), while shelter inflation remained unchanged at 4.9% y/y. On m/m basis, inflation held steady at 0.2%.
For the full Coronation fixed income and exchange rate (CFEX) update, please click here
