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 […]

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 […]

The week that was (August 21-25) – Jaw dropping results at the FGN Bond Auction Low demand at the bond auction drives spike in marginal rates: The highlight of last week was the sell-off in bonds at the end of the week, with yields closing the week roughly 20-30bps from the end of the previous […]

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 […]

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 […]

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 […]

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 […]