Financial market update

28 September, 2011, Sweetcrude, Lagos- International News
JPY: The Yen rose buoyed by Japanese fund repatriation and buying by Japanese exporters

CHF: The Swiss franc traded lower against the dollar and euro but remained in a tight range against both currencies. It had been bought heavily by safe-haven investors as debt crises in the euro zone and the United States deepened until the Swiss National bank capped the franc at 1.20 per euro on Sept 6. It has been close to that mark since.

ZAR: South Africa’s rand held its gains of the past session against the dollar and could struggle to firm further as there is still no resolution to the euro zone debt crisis that has kept market jittery. The Rand has gained 6% this week, recovering from 28 month low of 8.4950 on hopes that policymakers were working on boosting the Euro zone bailout’s funds.

Nigeria News
· Bonds –
Trend remains bearish as we continue to see the expected correction on the yield curve, more impact seen on the short end with an average move of 23bps up on the 2013-2014 bond yields. Outlook remains bearish as we expect to see more correction on the yield curve.

· Bills – continued sell-off in the bills market, yields sold up 40-70 bps on all maturities. Outlook remains bearish as there is another primary auction on Wednesday. On offer is 91dy, 182dy and 364dy bills totaling NGN126.9bio. the OMO auction on Tuesday was sold at a stop rate of 11.00%, NGN20.38bio was sold out of NGN50bio offered

· Money Market – OBB up 25bps to 10.25%, unsecured O/N rate also up 25bps to 10.75%, approved FAAC funds of NGN330bio was credited yesterday. This, however, had no impact in the cash markets given the current illiquid condition of the market.

· Interbank/WDAS – the Central Bank has $700mio on offer today

Hi            Low             Close          Prev.Close
158.18/28     157.90/00   157.97/00     157.95/05

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