05 January 2017, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: The Manufacturing Purchasing Managers’ Index (PMI) stood at 52 index points in December 2016, indicating expansion in the manufacturing sector during the review period. The index had recorded decline in the preceding 11 months. The report showed that production level, new orders, and raw material inventories expanded from contraction; employment level declined slower, but supplier delivery time worsened from improving December 2016. In addition, the report showed that at 47.9 index points, the supplier delivery time for manufacturing sub-sectors contracted in the month of December 2016, after nine consecutive periods of expansion.
FX: Trading pattern was unchanged yesterday with CB daily intervention at EOD within the $/NGN 304.50 – 305.50 range. Turnover was estimated at $18.1m between the $/NGN 304.50 – 315.00 level.
FIXED INCOME: Bond yields adjusted higher again ahead of the auction. Demand for short-dated bills also persisted as money market conditions remained unchanged. It was a very busy day in bonds and the same tone is expected today. Bill auction results still awaited.
U.S: The dollar gave back some of its recent gains, oil prices rallied following a volatile session on Tuesday and US stocks held in sight of record highs as participants continued to weigh the outlook for global growth and inflation. Manufacturing reports in the US, China and Europe this week have been encouraging, and German consumer price data has been robust. US Treasuries were similarly becalmed, with the 10- year yield flat at 2.45% ahead of the release of the minutes of the Federal Reserve’s policy meeting last month, at which it raised interest rates 25 basis points. The strength of the dollar which reached its highest level since late 1992 against a basket of currencies on Tuesday has been largely based on expectations for further US rate rises in 2017 even as other banks maintain looser policies.
FRANCE: France is to reopen a bond that matures in 2066 in a bid to take advantage of the demand from yield-hungry investors in Asia, even as the country braces from market volatility ahead of a bruising presidential election this year. The deal which will be priced today is the latest sign that investors are still preoccupied with low global interest rates, in spite of new optimism about the world economy. French borrowing rates remain low by historical standards, with the existing 2066 bond trading at a yield just less than 2%. However, yields have been rising in recent months amid a global sell-off, while political turbulence saw the spread between 10 year French and German bonds hit the widest level in three years at the end of 2016.
COMMODITIES: Oil prices dipped on Thursday, hit by doubts that producers would fully deliver on promises to cut output, although record U.S. automobile sales and falling crude stocks offered markets some support. Brent crude futures, the international benchmark for oil prices, were trading at $56.29 per barrel by 0559 GMT, down 17 cents from their last close. In the United States, crude prices were firmer than on international markets, supported by strong vehicle sales and a report of falling commercial crude stockpiles.
Macro Economic Indicators
Inflation rate (Y-o-Y) for November 2016, 18.48%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at Jan 03,2017, 26.094
Money Market Highlights
NIBOR (%)
O/N 8.2917
30 Day 15.9925
90 Day 17.5164
180 Day 21.5827
LIBOR (%)
USD 1 Month 0.77167
USD 2 Months 0.81944
USD 3 Months 0.99789
USD 6 Months 1.31767
USD 12 Months 1.06675
Benchmark Yields
Tenor Maturity Yield (%)
91d 06-Apr-17 13.87
182d 06-Jul-17 19.11
364d 02-Nov-17 22.28
2y 29-Jun-19 15.95
3y 13-Feb-20 16.06
5y 27-Jan-22 15.84
Indicative Currency Exchange Rates
Bid Offer
USDNGN 314.50 315.00
EURUSD 1.0447 1.0649
GBPUSD 1.2243 1.2445
USDJPY 115.99 116.02
USDCHF 1.01245 1.0226
GBPEUR 1.1601 1.1805
USDZAR 13.4669 13.6703
JPYNGN 2.6397 2.7403
CHFNGN 312.74 314.39
EURNGN 338.92 340.28
GBPNGN 404.78 406.18