Financial market update

24 August, 2011, Sweetcrude – International News
· YEN:
The yen came under light pressure on Wednesday after Moody’s cut its rating of Japan’s government debt and on news that Finance Minister Yoshihiko Noda will hold a news conference at 11.30am on steps to curb the yen’s advance.

· CHF: The Swiss franc was treading water against the euro and the dollar on Wednesday, with investors less risk averse due to the prospect of another bout of stimulus measures by the Federal Reserve to breathe life into the U.S. economy.

· CNY: The yuan rose against the dollar in early trade on Wednesday after the People’s bank of China fixed its mid-point at a record high, signalling the government is permitting another leg of yuan appreciation, traders said.

Nigeria News
· Bonds –
The market continued bearish yesterday with yields up all across the curve, demand seems weak and is failing to counter the sell off at the moment. We will probably see some demand returning when the market eventually stabilizes at the new levels after this round of volatility.

· Bills – A sell-off across board occasioned by CBN’s late broadcast to offer N50bn of the 01/09/11 bills yet again. Long after market close the CBN reversed this decision and didn’t sell any of the N50bio they had on offer. This is expected to cause a very volatile session in today’s trading as the market grapples with the CBNs decision.

· Money Market – Unsecured O/N rates went up 10.00% as liquidity thinned out.

· Interbank/WDAS – $400m is on offer at today’s WDAS auction.

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