Author Archives: wallesmit

Nigeria Fixed Income Weekly

The week that was (August 14-18) – Liquidity reprieve drives downward retracement in yields Improved system liquidity post FX sales auction sends NTB yields lower: A bit of a rollercoaster week for debt markets as the tight liquidity conditions at the close of prior week continued into the week resulting in OBB/Overnight rates climbing to […]

Dear Finance Minister, Please drop the refinancing idea

Last week, the Finance Minister, Kemi Adeosun announced that the Federal Executive Council had approved a plan to refinance $3billion (N1.1trillion) worth of Nigerian Treasury Bills with issuance of 3-year dollar bonds. The aim of the plan, which is still to go the National Assembly for approval, is to lower debt service costs as by […]

Nigeria – Fixed Income Weekly

The week that was (August 7-11) – Finance Minister announces NTB refinancing plan Tight liquidity conditions push benchmark NTB yields higher: Liquidity conditions were tight last week with OBB/ON rates closing at 55.8-59% from 22-22.5% in the prior week. As in prior weeks, CBN continued its assault on system liquidity with net OMO issuances of […]

Nigeria – Fixed Income Weekly

The week that was (July 31-August 4) – CBN continues offensive on system liquidity CBN STABs again:  After a one-month hiatus, the CBN resumed issuance of stabilization securities with a NGN250bn sector wide debit last week Tuesday at a slightly higher discount rate of 17.1% (vs 16% previously) on the 6M tenor.  The development alongside […]

Nigeria – Fixed Income Weekly

The week that was (July 24-28) – Yield curve rises as CBN signals ‘no retreat, no surrender’ on tightening Benchmark NTB yields inch higher as CBN remains committed to tightening: Despite a liquidity deluge from OMO & FGN bond maturities and FAAC inflows, which drove OBB and O/N rates into single digits at the end […]

Nigeria – Fixed Income Weekly

The week that was (July 17-21) – Yields curve rises on softening system liquidity Despite net OMO bill issuances, NTB yields soften: Despite sustained liquidity tightening as the CBN issued NGN275bn worth of OMO bills to take out NGN97bn in maturities, benchmark Nigerian Treasury Bill (NTB) yields declined: 91-day ( down 510bps), 182-day (down 100bps) […]

June 2017 Inflation: Headline reading positively surprises, but no respite for bond market bulls

Softer food inflation induces a slowdown in monthly inflation On Monday, the National Bureau of Statistics (NBS) released the June 2017 inflation numbers and contrary to my call for a sticky number at 16.3% y/y, headline inflation declined for the fifth consecutive month to 16.1% y/y. (May : 16.3% y/y). In recent readings, inflation had […]