Monthly Archives: February 2020
A primer on NDF tenor elongation
In mid-February 2020, the Central Bank of Nigeria (CBN) announced an extension of its supply of Naira settled OTC FX futures with the addition of forty-seven (47) new monthly OTC FX Futures contracts to the existing thirteen (13) contracts have been introduced from February 13, 2020, bringing the total number of open OTC FX Futures […]
Nigeria Fixed Income Weekly
The week that was: (Feb 17-21): Interest rates grind lower on higher liquidity, DMO stuns debt markets and higher inflation. Interest rates decline further on robust system liquidity: System liquidity remained buoyant following the NGN1.4trillion inflow during the previous week and OMO maturities of NGN630billion over the course of the week. Accordingly, money market rates […]
Nigeria Fixed Income Weekly
The weeks that were: (Feb 10-14): Liquidity deluge drives interest rates lower, CBN defensive action on FX gathers steam The mammoth February maturities push rates south: After the CRR debits drove yields higher in the prior week, system liquidity improved as inflows from the FGN 2020 bond (NGN606billion) and OMO bills (NGN517billion) helped drive compression […]
Nigeria Fixed Income Weekly
The weeks that were: (Jan 27-Feb 7): Front end rates rise in response to CRR hike, FG blows fiscal deficit ceiling in 2019 Short-dated interest rates rise post CRR debits: Following the various CRR debits over the last two weeks, front-end yields have climbed as markets grapple with reduced banking sector liquidity. The debits have […]
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