Monthly Archives: September 2017

CBN Deficit financing: A word of caution on interpretation

As is customary ahead of the start of its two day monetary policy retreat for September 2017, the Central Bank of Nigeria (CBN) released the personal statements of members of the monetary policy committee (MPC) from the July meeting. In one of the statements, Dr. Doyin Salami, stated that the apex bank has been running […]

Nigeria Fixed Income Weekly

The week that was (Sept 18-22) – Lukewarm CBN stance on liquidity triggers strong buying across the curve Bulging liquidity drives downward shift in the yield curve: In line with the declining pattern since the end of August, the Naira yield curve continued to drop as a passive CBN approach to system liquidity continued to […]

Nigeria Fixed Income Weekly

The week that was (Sept 11-15) – Build-up in system liquidity induces strong buying across the yield curve Yield curve succumbs to mounting liquidity: Last week, the Naira yield curve declined across board as the CBN stood askance for the second consecutive week, allowing a build-up in system liquidity to trigger strong buying activity. For […]

Nigeria Fixed Income Weekly

The week that was (Sept 5-8) – Yield declines on improved liquidity Switch in OMO tenors and higher system liquidity drives yields lower: Benchmark Nigerian Treasury Bill (NTB) yields declined 63bps on average to 18.55% (91-day), 19.09% (182-day) and 21.02% (1yr) owing to a combination of improved system liquidity and market response to CBN signals […]

Nigeria – Fixed Income Weekly

The week that was (August 28-31) – Surprise ‘lull’ in CBN liquidity tightening weighs on short-dated yields CBN stands pat on system liquidity: After maintaining a tight stance on system liquidity, CBN for the first time in a while, eased off and allowed a net repayment of N82billion in OMO bills. The development follows several […]

July Inflation: Downtrend in inflation now has ‘legs’

Inflation slows down for the sixth month  Last week, the National Bureau of Statistics (NBS) released the much delayed July 2017 inflation report and for sixth consecutive month, the headline reading declined to 16.05% y/y. That said, much of the focus in the press has been on food inflation which hit an eight year high […]