Financial market products & services update

*Financial markets.

*Financial markets.

01 December 2015, Sweetcrude, Houston – Local and international financial market products and services update.
FX: The CB maintained the Special auction rate at 197.00 yesterday.

FIXED INCOME: Market opened this week on a subtle note with less volatility and last week’s very wide bid/offer spread started to close up. Actual trades were few and far between, and skewed to the left hand side for both T-bills and Bonds. T-bill yield moved up 12bps with the average now at 2.55%. Bond yield moved up 24bps with the average now at 10.02%. Money Market liquidity is NGN539bn and O/N is still at 1%.

COMMODITIES: Oil retraced some losses after the biggest monthly decline since July as the Organization of Petroleum Countries showed few signs of slowing its production heading into this week’s policy meeting. OPEC pumped 32.12 mill bbls/day in November, keeping output above its quota for an 18th month.

NIGERIA: Nigeria’s stocks fell to their lowest level in almost three years as foreigners exited the market amid fading hopes that President Mohammadu Buhari’s government can revive an economy growing at its slowest pace this country. The Nigerian Stock Exchange All Share Index dropped 0.8% to 27,385.69 at close yesterday, lowest since December 2012. The gauge declined on all but three trading days in November for a monthly drop of 6.2%.

CHINA: China’s central bank stepped up cash injections via open-market operations as a resumption of new share sales drove demand for funds. The People’s Bank of China auctioned 50 billion yuan ($7.8 billion) of seven-day reverse-repurchase agreements on Tuesday, more than the total of 30 billion yuan last week. Twenty-eight initial public offerings, including 10 this week, will lock up 3.4 trillion yuan of funds, according to a Bloomberg survey. Subscriptions that started on Monday drove the overnight money rate to the highest level in a month. This is a preemptive measure by the central bank to ensure liquidity is ample during the IPOs,” said Wan Zhao, a Shanghai-based analyst at China Merchants Bank Co. “The money market tightened slightly yesterday, and the PBOC wants to maintain the stability.

U.K.: The pound fell to its weakest level in seven months as the newest member of the Bank of England’s Monetary Policy Committee said he’s relaxed about keeping interest rates at a record low for now, reinforcing the dovish stance adopted by colleagues including Governor Mark Carney. Sterling also dropped against 15 of its 16 major peers before reports this week which, according to economists, will show slowdowns in manufacturing and construction. Economic growth has to “stabilize or even pick up a bit” and wages need to rise more strongly before the bank should consider its first rate increase since 2007, new policy maker Gertjan Vlieghe said.

Macro Economic Indicators
Inflation rate (Y-o-Y) for October. 2015                  9.30%
Monetary Policy Rate current                                   11.00%
FX Reserves (Bn $) as at November 27, 2015       30.013

Money Market Highlights

O/N                                0.8517
30 Day                           8.4107
90 Day                         10.4347
180 Day                       12.3716
USD 1 Month             0.2430
USD 2 Months           0.3280
USD 3 Months           0.4162
USD 6 Months           0.6599
USD 12 Months         0.9806

Benchmark Yields
Tenor     Maturity     Yield (%)

91d            25-Feb-16      1.52
182d         26-May-16     4.14
364d         20-Oct-16      4.26
2y              27-Apr-17      8.22
3y              29-Jun-19    10.23
5y              13-Feb-20    10.52

Indicative Currency Exchange Rates
                             Bid          Offer
USDNGN          196.00        199.50
EURUSD          1.0505         1.0707
GBPUSD           1.5019         1.5221
USDJPY            122.89        122.92
USDCHF           1.02265      1.0328
GBPEUR           1.4155         1.4359
USDZAR           14.2819       14.4853

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