15 August, 2011, Sweetcrude, Lagos –
· EUR: The euro extended its losses against the Swiss franc and the dollar on Tuesday after data on Germany’s second-quarter economic growth came in below market expectations.
· CHF: The Swiss franc rose against the euro and the dollar on Tuesday as renewed worries about the euro zone crisis pushed investors towards the safe haven currency despite the Swiss National Bank’s warning it could more measures to stem the franc’s rise.
· GBP: Sterling slipped back against a broadly firmer dollar on Tuesday as short-term speculative accounts sold ahead of UK inflation data, while the pound inched up against a weaker euro which was hit by soft German growth numbers.
· Bonds – A quiet session yesterday in the run up to the week’s auction with some slight selling as market tries to position. The expected FAAC inflow is expected to put some downward pressure on yields. There is some apprehension however as the market expects another possible rate hike come the September MPC meeting.
· Bills – Market opened bullish yesterday, dipping about 50bps on expectation of the FAAC inflow which should put downward pressure on rates. There was however a sharp correction midway through trading especially on the very short dated securities as news of a N100bn OMO offering today caused a spike of 80bps on the 01/09/11 bills.
· Money Market – Unsecured O/N rates are holding at 11.00% as liquidity thins out. Rates are expected to drop to 7.00% as the FAAC funds come in.
· Interbank/WDAS – $400m was offered and sold at yesterday’s WDAS auction with demand at $592.04m. CBN intervened at $/NGN152.5201.
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USD/NGN 153.85/95 153.20/30 153.82/92 153.65/75