Financial market update – 26072011

International News

USD: The dollar hit a record low against the Swiss franc and a four-month trough versus the yen on Tuesday, as investors remained skeptical that U.S. President Barrack Obama’s call for compromise would lead to a swift breakthrough in deadlocked debt talks.

AUD: The Australian dollar rose to a near three-month high on Tuesday as the U.S. debt impasse and Europe’s persistent debt troubles sent investors to currencies backed by stronger economies.

JPY: Japanese officials on Tuesday expressed growing discomfort over persistent yen rises, putting markets on alert for possible action in response to ever louder business complaints that an unchecked currency climb was hurting the export-reliant economy.

Nigeria News

Bonds – Quiet session to open the week, a slightly bullish trend witnessed given the yield levels across the curve after a sell-off at the end of the previous week, a flat yield curve expected today until after the MPC Meeting.

Bills – Trading activities remained calm and quiet yesterday, OMO auction and ongoing MPC meeting played a key factor to the stability in this session. Outlook remains bearish with yields up 10bps across board, same trend expected today until after the rate decision at the MPC meeting. OMO auction results are 212dy – no sale, 262dy – 8.50%, 338dy – 8.85%.

Money Market – Unsecured O/N rates stable at 7.50%.

Interbank/WDAS – $400m was offered and sold at yesterday’s WDAS auction with demand at $545.5m and CBN intervening at $/NGN151.76.

Hi Low Close Prev.Close
USD/NGN 152.25/35 151.95/05 152.18/28 152.15/25

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