Financial market products & services update

*Financial markets.

*Financial markets.

03 March 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: The Joint Committees of the Senate and House of Representatives on Appropriations on Wednesday assured Nigerians that the N6.08tn for this year budget would be passed on March 17, 2016.
The committees stated that the final report on the appropriation bill would be laid on the floor of both chambers of the National Assembly on March 16 for consideration and subsequent passage the following day. Both panels had earlier said that the February 25 date for the passage of the budget was no longer realistic due to errors and padding.

FIXED INCOME: Some decent momentum in bonds yesterday. A rally was seen as some dealers positioned ahead of the auction on the 16th. The overall tone was strong with the Feb 20s gaining the most (but some sellers emerged across the curve to close the day). T-Bill auction stops rates at 5.25%, 7.87% and 9.89% yield on the 91, 182 and 364 day. N45bn was sold on the 91day paper vs. N57.8bn. The amount sold on the 182day increased by this difference of N12bn. Bid/Cover on the 364day paper was 2.73X despite the large issue size of N222bn (N80bn offered at the last auction).

FX: The CBN announced its special auction for this week to hold today and intervention rate at $/NGN 197.00.

U.K: British house price growth picked up speed in annual terms last month as investors sought out buy-to-let properties before the introduction of a new tax, mortgage lender Nationwide said on Thursday.
House prices were 4.8% higher in February compared with the same month last year, a bigger increase than a 4.4% gain in January.
Economists taking part in a Reuters poll had expected prices to rise by 0.5% in monthly terms and by 5.0% on an annual basis.
British bankers have said they have seen growing demand for mortgages in recent weeks as investors seek to purchase buy-to-let properties before the new tax is introduced in April.

INDIA: India’s rupee rose for a fifth day in its longest winning streak since December after foreign investors boosted holdings of local stocks.
Global funds bought a net $442.7 million of shares on Tuesday, the biggest single-day purchase since September 2015. Finance Minister Arun Jaitley announced he was boosting spending on a rural jobs program and proposed a new health insurance plan, while allocating money for higher government wages and military pensions, in his budget speech a day earlier. Jaitley also reaffirmed a goal of narrowing the fiscal deficit to 3.5% of gross domestic product in the year starting April 1, the lowest in nine years.

COMMODITIES: Oil held gains near the highest close in eight weeks as U.S. crude output declined amid easing price volatility.
Futures were little changed in New York after climbing 0.8% Wednesday. Output fell for a sixth week to 9.08 million barrels a day, the lowest level since November 2014, according to the Energy Information Administration. Crude inventories rose, keeping supplies at the highest in more than eight decades. The CBOE Crude Oil Volatility Index, which measures expectations of price swings, dropped to the lowest since Jan. 6.

Macro Economic Indicators
Inflation rate (Y-o-Y) for January 2016           9.62%
Monetary Policy Rate current                           11.00%
FX Reserves (Bn $) as at March 01, 2016,      27.822

Money Market Highlights

O/N                                3.1250
30 Day                           7.2254
90 Day                           8.7539
180 Day                       10.2486
USD 1 Month              0.4352
USD 2 Months            0.5175
USD 3 Months            0.6316
USD 6 Months            0.8826

Benchmark Yields
Tenor      Maturity      Yield (%)

91d             02-June-16    4.88
182d           01-Sep-16       7.77
364d          16-Feb-17       8.93
2y               31-Aug-17       9.73
3y               30-May-18    10.13
5y               13-Feb-20      11.51

Indicative Currency Exchange Rates
Bid       Offer
USDNGN       197.00     199.50
EURUSD        1.0770     1.0972
GBPUSD        1.3963     1.4165
USDJPY         113.94     113.97
USDCHF       0.99215   1.0024
GBPEUR       1.2836      1.3041
USDZAR       15.5437    15.7477
JPYNGN       173.9797  174.0803
CHFNGN      198.56      200.25
EURNGN      215.62      216.98
GBPNGN      276.29      277.69

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