14 January 2015, Sweetcrude, Houston – Local and international financial market products and services update.
NIGERIA: During a high profile policy dialogue on ‘Infrastructure and Structural Transformation in Nigeria’ organised by the African Development Bank (AFDB), it was stated that 52% of this amount will come from the treasury, while the private sector is expected to cover the balance of 48%. Nigeria like many other African countries have huge infrastructure gap that needs to be filled for attain expected development. Government had said Nigeria would require $2.9trn in the next 30 years to bridge its infrastructure gap.
FX: Two way quotes trading resumed interbank today following resolutions at today’s emergency FMDA meeting on the back of CB’s review of NOP to 0.1% of SHF. Standard interbank trading size was reduced to $100k, while the bid-offer spread was maintained at 10 points. Market opened at the 183 level and interbank standard size trading level was capped at 184.15 intraday.
FIXED INCOME : Bearish tone in the bond market ahead of today’s auction. Inflation prints had no effect in yesterday’s trading. Average yield on T-bill another 18bps lower. Recently issued OMO bills getting good support. 21 May 15 bill issued on Thursday at 14.20% discount now offered at 13.20%; 04 June 15 also gaining good momentum. All in all another day skewed to the buyers on T-bills and skewed to sellers on bonds.
US: U.S. long bonds have surged amid a 2015 rally in bonds around the world, returning 5.6%, Bank of America Merrill Lynch data show. The securities are on track for their biggest monthly gain in a year. The U.S. is scheduled to sell $13 billion of 30-year debt today. Plunging oil prices suggest inflation will hold in check, and copper joined in the commodities rout today.
Treasuries rose, pushing 30-year yields toward a record low and sending 10-year yields to the least since May 2013, as falling commodity prices cut the outlook for inflation.
INDIA: India’s one-year interest-rate swaps were near an 18-month low on optimism plunging Brent crude prices will keep slowing inflation for the net oil-importing nation, giving the central bank room to cut rates.
Brent slid for a fifth day, extending losses from the lowest close in more than five and half years. Wholesale prices in India probably rose less than 1% in December after stagnating the previous month; a Bloomberg survey shows before data due today. The CPI rose 5% in December from a year earlier, holding below the central bank’s target for a third month.
COMMODITIES: Oil prices have dropped 60 percent since June as the U.S. pumped more shale crude and OPEC resisted calls to cut production, stoking a global supply glut. While the 28-company STOXX 600 Oil & Gas Index has fallen 3.7 percent this month, shares of Rotterdam-based Royal Vopak NV (VPK), the world’s largest independent storage tank operator, have surged 14 percent.
Macro Economic Indicators
Inflation rate (YoY) for Nov., 2014 7.90%
Monetary Policy Rate current 13.00%
FX Reserve (Bn $) as at January 09 2015 34.491
Money Market Highlights
NIBOR (%)
O/N 9.5000
30 Days 13.0378
90 Days 13.9506
180 Days 15.2959
LIBOR (%)
USD 1 Month 0.1665
USD 2 Months 0.2135
USD 3 Months 0.2533
USD 6 Months 0.3576
USD 12 Months 0.6224
Benchmark Yields
Tenor Maturity Yield (%)
91d 09-Apr-15 11.61
182d 25-Jun-15 13.69
364d 07-Jan-16 15.77
2yr 16-Aug-16 15.10
3yr 31-Aug-17 15.38
5yr 23-Oct-19 15.45
Indicative Currency Exchange Rates
Bid Offer
USDNG 180.00 186.00
EURUSD 1.1706 1.1908
GBPUSD 1.5081 1.5283
USDJPY 116.98 116.99
USDCHF 1.01215 1.0223
GBPEUR 1.2757 1.2961
USDZAR 11.3866 11.5900
JPYNGN N/A N/A
CHFNGN N/A N/A
EURNGN N/A N/A
GBPNGN N/A N/A
ZARNGN N/A N/A