Financial market update

29 September, 2011, Sweetcrude, Lagos- International News
EUR – the euro gained on short-covering in volatile commodity-driven trade after riskier assets bounced off intraday lows, but was still on track to mark its worst quarter since early 2010, with traders preparing for further falls.

CHF: the Swiss franc slipped against the Euro after the Swiss National Bank’s vice chairman said it will defend the limit of 1.20 francs per Euro with all necessary means.

ZAR: The South Africa’s rand firmed against the dollar with dealers expecting it to maintain its gains and make another attempt to break 7.75

Nigeria News
· Bonds –
Bearish session yesterday with the short end going up 20-34bps in reaction to the CBN trying to further squeeze liquidity with an OMO offering on a day when there was already a regular scheduled T-bill auction. With liquidity very thin at the moment it is expected that the market will continue to be relatively bearish until liquidity eases.

· Bills – with the CBN coming out yesterday to place N60bio in 67 day bills on offer using the OMO window, rates in the secondary market spiked. With the regular scheduled primary auction also taking place yesterday, the OMO auction created panic in the market leading to a very patchy session as the market looks to the auction for rate direction which is likely to be up

· Money Market – OBB held stable at 11.25% while unsecured O/N rates went up to 11.75%. the CBN offered N60bio in an OMO auction further squeezing liquidity..

Interbank/WDAS – CBN offered and sold $700mio, total demand was $703mio with the lowest intervention rate at 156.15 [inc. the 1% commission], 42 points appreciation against the previous auction..

Hi Low Close Prev.Close
158.35/45 157.40/50 158.35/45 157.80/90

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