Financial market products & services update

*Financial markets.

*Financial markets.

07 December 2015, Sweetcrude, Houston – Local and international financial market products and services update.

NIGERIA: Managing Director of The Infrastructure Bank Plc (TIB), Mr. Adekunle Oyinloye on Friday stated that development of infrastructure is the major stimulant the Nigerian economy needs to grow. Speaking at a press conference in Lagos, Oyinloye said countries such as China and Singapore recorded a great leap in their economies because of the massive development of infrastructure they embarked upon. The TIB boss, however, said the federal government had started well by putting the legal framework in place that would enable private sector to partner the public sector so as to deliver the infrastructures needed for the growth of the nation’s economy.

FX: The CB Special auction rate was 196.97 as at Friday.

FIXED INCOME: Market was very quiet on Friday. Traded volumes were generally low for both T-bills and bonds. Bonds traded sideways, however, t-bills continued it upwards movement. Local market still selling off old positions on t-bills. T-bill yield moved up 135bps W-O-W and average at 4.41%, Bonds also moved up 63bps W-O-W and average at 10.47%. O/n traded between 0.5% and 1% for the whole week. Money Market liquidity is NGN1.04trn

COMMODITIES: Oil extended losses below $40 a barrel amid speculation a record global glut will be prolonged as OPEC effectively abandoned its long-time strategy of limiting production to control prices. West Texas Intermediate for January delivery declined as much as 77 cents to $39.20 a barrel on the New York Mercantile Exchange and was at $39.66 at 4:04 p.m. Singapore time.

CHINA: China’s yuan fell the most in a week after the central bank lowered the currency’s reference rate by the most in a month as the greenback rose on expectations of a U.S. interest-rate increase. The People’s Bank of China cut its fixing, which limits the onshore yuan’s moves to 2 percent on either side, by 0.21 percent to 6.3985 a dollar. That came after a gauge of the U.S. currency rallied 0.5 percent in two days after stronger-than- expected jobs data boosted the possibility of a Federal Reserve rate liftoff. China’s foreign-exchange reserves fell in November to the lowest since March 2013, according to a Bloomberg survey before data due Monday.

EUROPE: Mario Draghi defended the European Central Bank’s expansion of its stimulus program a day after investors panned it, while saying further action can be taken if needed. The euro fell. The combination of measures “was not a package meant to address market expectations,” the ECB president said at an event in New York on Friday. “It was meant to address the reaching of our objectives.” Bond yields jumped and the euro surged on Thursday after Draghi announced an interest-rate cut and a six-month extension to quantitative easing — actions that disappointed investors. In New York, he countered that he’s confident the central bank will meet its inflation target of just under 2 percent, a level not seen since early 2013. The euro extended declines as he spoke, and was down 0.7 percent to $1.0865 at 1:35 p.m. New York time.

Macro Economic Indicators
Inflation rate (Y-o-Y) for October. 2015                9.30%
Monetary Policy Rate current                                11.00%
FX Reserves (Bn $) as at December 3, 2015       29.796

Money Market Highlights
O/N                               0.9517
30 Day                          9.6509
90 Day                         11.4309
180 Day                       13.0329
USD 1 Month              0.2755
USD 2 Months            0.3607
USD 3 Months            0.4620
USD 6 Months            0.6924
USD 12 Months          1.0177

Benchmark Yields
Tenor      Maturity       Yield (%)

91d             3-Mar-16         4.06
182d           2-Jun-16         6.22
364d          20-Oct-16        5.78
2y               27-Apr-17       10.57
3y               29-Jun-19      11.80
5y               13-Feb-20      12.11

Indicative Currency Exchange Rates
                             Bid           Offer
USDNGN          197.50         199.50
EURUSD          1.0722          1.0924
GBPUSD           1.4973         1.5175
USDJPY            123.39         123.42
USDCHF          0.99685      1.0070
GBPEUR          1.3826         1.4030
USDZAR          14.3340      14.5374

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