Financial market products & services update

*Financial markets.

*Financial markets.

01 March 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: President Muhammadu Buhari has assured the business community in Qatar that Nigeria will remove any impediment that hinders investment in the country.
His media aide, Mr. Femi Adesina, said Buhari spoke at a meeting with senior executives of the Qatar Chamber of Commerce and Industry and some private businessmen in Doha on Sunday, adding that the president acknowledged that security was essential to prosperity and development.
Buhari said: “Nobody invests without first knowing how secure a country is. That is why we have placed a high premium on securing the country, because you cannot effectively manage a country you have not secured.

FIXED INCOME: Another successful OMO auction yesterday following FAAC inflows. Actual subscription details yet to be released but stop rate came in unchanged at 7.75% discount (8.27% yields) for 206day paper. The OMO announcement drove yields higher again at the start of trading. By midday, both markets went quiet with some slight yield reversal seen. Bonds moved up average 12bps while T-bills moved 30bps. No OMO expectation today but we could see the bearish sentiments linger.

FX: The CBN weekly special auction for last week held on Thursday the 25th February and intervention rate at $/NGN 197.00. Results are expected today.

COMMODITIES: Oil climbed from the highest close in more than seven weeks as investors overlook deteriorating Chinese manufacturing amid speculation producers will cooperate to support the market.
Futures advanced as much as 1.7% in New York after rising 3% on Monday. Saudi Arabia wants a stable oil market, according to state-run Saudi Press Agency. China’s manufacturing purchasing managers index fell to 49 in February, missing the median estimate of 49.4 in a Bloomberg survey of economists. It hasn’t been at weaker level since January 2009.

CHINA: China’s factory gauge extended its stretch of deteriorating conditions to a record seven months while a measure of services fell to the weakest in seven years, underscoring the challenge for policy makers as they seek to cut overcapacity in manufacturing without derailing growth.
The manufacturing purchasing managers index dropped to 49 in February, missing the median estimate of 49.4 in a Bloomberg News survey of economists. It hasn’t been weaker since January 2009. Numbers below 50 indicate conditions worsened. In a sign China’s slowdown is spreading, the non-manufacturing PMI — which has been outperforming the factory measure — fell to the lowest level since December 2008.

U.S: The biggest Treasury market two-month gain in a year is about to give way to a selloff, based on Bloomberg surveys of economists.
Benchmark 10-year yields will climb to 1.84% by March 31 from 1.73% Tuesday, the Bloomberg surveys show, with the most recent forecasts given the heaviest weightings. The move would result in a loss of about 1%, according to data compiled by Bloomberg.
Stocks and oil prices are showing signs of stabilizing after a rout earlier this year drove investors to the relative safety of U.S. debt. The Labor Department’s monthly employment report March 4 will show U.S. hiring increased, based on responses from economists.

Macro Economic Indicators
Inflation rate (Y-o-Y) for January 2016             9.62%
Monetary Policy Rate current                             11.00%
FX Reserves (Bn $) as at February 26, 2016,     27.809

Money Market Highlights

O/N                            1.2550
30 Day                       7.4570
90 Day                      9.0999
180 Day                   10.6513
USD 1 Month          0.4385
USD 2 Months        0.5230
USD 3 Months        0.6351
USD 6 Months        0.8806

Benchmark Yields
Tenor      Maturity      Yield (%)

91d            02-June-16     4.96
182d          01-Sep-16       7.30
364d         16-Feb-17        9.13
2y              31-Aug-17      10.38
3y              30-May-18    10.49
5y              13-Feb-20      11.93

Indicative Currency Exchange Rates
Bid        Offer

USDNGN        197.00       199.50
EURUSD         1.0774       1.0976
GBPUSD         1.3866       1.4068
USDJPY          112.90       112.90
USDCHF         0.99345   1.0036
GBPEUR         1.2741       1.2944
USDZAR         15.6166    15.8188
CHFNGN       200.11       201.80
EURNGN       217.06       218.42
GBPNGN       298.30      299.70

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