6 October 2011, Sweetcrude, Lagos- International News
EUR – the Euro held steady against the dollar as uncertainty gripped markets before an ECB meeting that could see rates cut or the rebirth of long term lending to banks while Europe’s efforts to resolve its debt crisis and solid U.S data provided tentative support to riskier assets
AUD: the Aussie dollar marked time yesterday following an offshore rally, as uncertainty gripped FX markets ahead of ECB meeting which might, or might not, see a rate cut and boost risk assets. The Australian dollar, highly vulnerable to wild swings in sentiment driven by the euro debt crisis, was reluctant to follow surge in Asian stocks as risk appetite improved.
· Bonds – A bit of a slowdown in the bearish trend seen over the last week and a half, the market seems to have settled temporarily but expectation is that we might see the CBN come in with possible OMO auctions in an attempt to mop up liquidity which will spark another round of selling.
· Bills – Buying in the early hours of trading as some demand returned to the market, after the comments by the CBN governor this afternoon some cautious sentiment set the market selling. Rates did not recover above opening levels though we can expect the sell off to continue tomorrow
Money Market – OBB is holding at 11.25% today while unsecured O/N rates are also stable at 11.50%. Market is still relatively thin on liquidity and rates are not expected to drop over the next week
Interbank/WDAS – CBN offered and sold $400mio, total demand was $685 with the lowest intervention rate at 156.954 [inc. the 1% commission], 80 points depreciation against the previous auction.
Hi Low Close Prev.Close
USD/NGN 162.15/25 159.10/20 161.48/58 159.40/50