28 October 2011, Sweetcrude, Lagos- International news
· EUR – Euro extended gains rising through its 100 and 200 day moving average verses the USD on the back of positive news emerging from the Eurozone.
· GBP – The pound extended its decline versus the Euro after minutes of the Bank of England’s latest policy meeting showed officials voted unanimously to expand the size of their asset purchase program.
· JPY – The JPY appreciated against 13 of its 16 most traded counterparts as expectations Japan will intervene to weaken its currency faded even after it rose to a record for the fourth time in five days this week.
· CBN Governor Mallam Sanusi Lamido Sanusi has appealed to the Senate to support a proposed Bill, which sought the injection of additional N500 billion to the AMCON. Sanusi made the appeal at an interactive session with the Senate Committee on Banking, Insurance and other Financial Institutions yesterday. The CBN boss noted that the intention of the proposed fresh funds to AMCON was to empower the company to be in a position to recapitalise any ailing bank to restore confidence in the banking sector.
· Bonds – Markets traded rather bullish yesterday across the curve as some confidence returns and as liquidity also seems rather stable in the money markets. Markets are still very volatile and the distortions on the curve still exist with the 2 & 3 year trading above the 5 & 20yr but below the 7year.
· Bills – Also a bullish session in the bill market, more so as the auction result didn’t spike contrary to popular opinion. This sent a lot of the lost demands into the secondary market as investors don’t wish to lose out on the current high yields.
NIBOR(%) LIBOR (%)
O/N 15.0000 USD 1 month 0.2458
7 Day 15.4583 USD 2 month 0.3318
30 Day 16.0833 USD 3 month 0.4281
60 Day 16.5000 USD 6 month 0.6189
90 Day 17.0000 USD 12 month 0.9313
Y/Y Consumer Inflation Sep 2011 : 10.30%
FX Reserves: 21 October 2011 USD33.67bn
Source: FMD and CBN