07 June 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: Nigeria’s trade surplus fell 42% to 3.3 trillion naira in the first quarter as the value of exports declined, the National Bureau of Statistics said. The surplus decreased from 5.7 trillion naira in the previous three months, the Abuja-based agency said in an e-mailed report yesterday.
EUROPE: U.S. Treasury Secretary Timothy F. Geithner and Federal Reserve Chairman Ben S. Bernanke are concerned about the European banking industry, Finnish Prime Minister Jyrki Katainen said after meeting the two U.S. officials. European Union leaders, including European Central Bank President Mario Draghi and European Commission President Jose Barroso, have called for a banking union with more coordination of regulation, as lawmakers seek to bolster confidence damaged by debt turmoil.
INDIA: Indian stocks headed for the highest level in a month after Prime Minister Manmohan Singh pledged to revive growth in Asia’s third-largest economy. India’s Singh yesterday outlined port, railways and road projects and a push to add power-generation capacity to bolster the economy.
CHINA: China delayed tightening bank capital rules to the beginning of next year, signalling support for loan growth as policy makers seek to arrest a slowdown in the world’s second-largest economy. New draft rules from the China Banking Regulatory Commission aim to set “reasonable” schedules for banks to meet capital targets in a way that helps “maintain appropriate credit growth,” the government said on its website yesterday, without giving a deadline for compliance.
Bonds – Light demand across the curve yesterday though not significant, expected slowdown in activity tomorrow as the long-dated bills adjust to new cut-off rates which might feed into the short end of the yield curve.
Bills – Bearish trend persists in the bills market with yields closing higher across board, though the offered bills at yesterday’s auction came off 15 – 20bps respectively due to views of it been overvalued in the secondary market against expectations of its cutoff rate at the auction. 1yr cutoff rate at 15.699% this will inspire some further correction around the 309dy – 364dy bills which is currently traded at 15.10% discount.
Money Market – OBB and unsecured O/N rates up 50bps today 14.50% and 15.00% respectively.
CBN WDAS AUCTION
Offered: 300mio Sold: 300mio
Marginal rate: 155.91
Weighted average: 155.88
No. of Banks: 18
Hi Low Close Prev.Close
USD/NGN 163.60/70 160.69/79 160.85/95 162.25/35
|NIBOR (%)||LIBOR (%)|
|O/N||14.9583||USD 1 month||0.2408|
|7 Day||15.2083||USD 2 month||0.3468|
|30 Day||15.6250||USD 3 month||0.4679|
|60 Day||15.9583||USD 4 month||0.5681|
|90 Day||16.2917||USD 6 month||0.7379|
|USD 12 month||1.0707|
|Y/Y Consumer Inflation April 2012 :||12.9%|
|FX Reserves: 04 June 2012 (USD bn)||37.699|
|Source: FMD and CBN|