Financial market products & services update

*Financial markets.

*Financial markets.

30 December 2015, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: The federal government, through the Petroleum Products Pricing Regulatory Agency (PPPRA), on Tuesday approved new pump prices of petrol starting from January 1 to March 31, 2016 under a revised pricing template.
Under the new pricing template, the government approved two pump prices – one for the retail outlets of the Nigerian National Petroleum Corporation (NNPC), which will sell at N86 a litre, and another for retail outlets operated by private business concerns in the downstream petroleum sector, which will dispense at N86.50 a litre. He said both open market prices reflect a drop of N1 and 50k respectively from the current official price of N87 per litre, which will
no longer obtain after December 31.

FIXED INCOME: Following the announcement of an OMO auction yesterday before the commencement of trading, T-bill yields became wider as traders started selling to drop their exposures and sought for good a buy. Recent trend has been for the CBN to drain some liquidity once we breach N1 trillion (liquidity opened at N1.1trn yesterday). Tone on the rest of the bond curve was fairly decent – the buying continued as street positions against next year. Most of the demand seen was on the June 2019s.

FX: The CBN daily auction closed for the year on Friday the 18th December 2015 and will resume January 4 2016.

COMMODITIES: Oil resumed its decline toward $37 a barrel before weekly U.S. crude inventory and production data.
Futures slid as much as 2% in New York, trimming Tuesday’s 2.9% gain. Stockpiles probably dropped by 2.5 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report Wednesday. That would still leave supplies more than 120 million barrels above the five-year seasonal average.

U.K: U.K. house prices rose the most in eight months in December, and an improving economy and labor market will support further gains in the coming months, Nationwide Building Society said.
The average price of a home rose 0.8% to 196,999 pounds ($292,100) from November, the most since April, the lender said in a statement on Wednesday. The annual rate of growth accelerated to 4.5% in December from 3.7% the previous month.
Reports this year have pointed to a growing supply problem in Britain’s housing market, which is pushing up values and making it harder for first-time buyers. Prices will rise between 3% and 6% next year as falling unemployment and low borrowing costs bolster demand, Nationwide said.

CHINA: China has suspended at least two foreign banks from conducting some cross-border Yuan business until late March, according to people with direct knowledge of the matter.
The three-month ban was imposed Tuesday by the People’s Bank of China, they said, asking not to be identified because they weren’t authorized to speak publicly on the matter. The clampdown comes as a widening gap between the Yuan’s onshore and offshore rates makes it profitable to buy the currency in Hong Kong and sell it in Shanghai. The PBOC didn’t immediately respond to questions regarding the matter, which was reported earlier by Reuters.

Macro Economic Indicators
Inflation rate (Y-o-Y) for November 2015            9.37%
Monetary Policy Rate current                               11.00%
FX Reserves (Bn $) as at December 17, 2015    29.309

Money Market Highlights

O/N                              1.0000
30 Day                         9.3932
90 Day                       10.7667
180 Day                     12.8177
USD 1 Month            0.4219
USD 2 Months          0.5128
USD 3 Months          0.6031
USD 6 Months          0.8273

Benchmark Yields
Tenor      Maturity      Yield (%)

91d           31-Mar-16        3.36
182d        30-Jun-16         5.77
364d        15-Dec-16         8.15
2y             31-Aug-17         8.18
3y             30-May-18       9.10
5y             13-Feb-20       10.72

Indicative Currency Exchange Rates
Bid       Offer

USDNGN         197.00       198.60
EURUSD          1.0836      1.1038
GBPUSD          1.4714        1.4916
USDJPY           120.41       120.44
USDCHF         0.98655    0.9966
GBPEUR         1.3445       1.3659
USDZAR         15.2477      15.4501

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