Financial market update

1 September, 2011, Sweetcrude, International News
· YEN: The yen fell broadly after dollar buying by Japanese accounts spurred more broad-based purchases of the greenback, at one point lifting it above 77yen and soothing jitters that another round of intervention by Tokyo may soon be on the way.

· GBP:
Sterling slipped versus the dollar on Thursday after falling in the previous session on month-end selling, with analysts saying the pound was likely to come under more pressure from a tepid growth outlook for the UK economy.

· CHF: The Swiss economy grew at its slowest pace since 2009 in the second quarter and looks set to weaken further in coming months as the record-strong Swiss franc bites.

Nigeria News
· Bonds – Fairly quiet session on Monday with the overall direction down for yields as some demand filtered in.

· Bills – Some light selling on Monday, rates went up an average 10-15bps across the maturities. The 01/09/11 bill originally sold as OMO matures in two days and it is unlikely that we will see any issuance this week in an attempt for the CBN to mop up again

· Money Market – Unsecured O/N rates closed at an average of 8.50% on Monday.

· Interbank –
Hi               Low            Close         Prev.Close
     154.95/35   154.22/32   154.90/00   154.65/75

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