07 October 2013, Sweetcrude, Lagos – Local and international financial market products and services update.
NIGERIA: Interest rates dropped despite N99.77bn Treasury bill repayment- Interest rates at the inter-bank market rose slightly across tenor buckets in spite of the N99.77 billion treasury bills repayment by the CBN.
BONDS: Trading session was generally bearish at the short end of the curve while the volume of trade remained near flat. Yields closed slightly lower than the previous close.
BILLS: T-bills trading was mixed as investors bought at the short to medium end and sold at the long end of the curve in today’s session. No uniform movement across the maturities.
MONEY MARKET: OBB and ON spiked slightly to close at an average of 10.75% and 11% respectively. The level of liquidity is still significantly high as the CBN sold about NGN247.06billion in the OMO market this week in a bid to mop up the excess liquidity in the system.
US: The world’s biggest investors are finding that U.S. government bonds are becoming safer, not more risky, as the deadline to avoid the first American default approaches. The yield on 10-year U.S. bonds dropped to a two-month low of 2.58 percent on October 3rd, after Treasury Secretary Jacob Lew said the government won’t be able to pay its debts in 14 days unless Congress raises the $16.7 trillion borrowing ceiling. While short-term bill rates and the cost to insure against a default have risen, volatility in Treasuries has fallen, a sign that investor confidence in the Federal Reserve is outweighing worries over the budget battle among U.S. political leaders.
EUROPE: Italian bonds rose on Friday, extending this week’s relief rally after Prime Minister Enrico Letta’s government won a confidence vote in parliament. Italian debt outperformed low-risk German bunds in a market seen range-bound a investors weighed the potential consequences of a lengthy U.S. budget standoff on the world’s biggest economy. Markets were looking to developments in the Italy, where a Senate committee started a process to expel former premier Silvio Berlusconi from Parliament after his tax fraud conviction. Italian 10-year yields were down 9 basis points at 4.30 percent, back to levels which prevailed early last week before Berlusconi’s allies threatened to withdraw from the ruling left-right coalition.
INDIA: India’s rupee snapped a three-day gain on speculation foreign investors will reduce purchases of the nation’s stocks as U.S. lawmakers remain deadlocked over extending the debt ceiling. India’s S&P BSE Sensex Index of shares fell 0.8 percent, while bonds also declined. The rupee’s losses will be limited as exporters are seen converting overseas earnings, according to analysts.
COMMODITIES: WTI crude fell as Gulf of Mexico production resumed after Tropical Storm Karen weakened and the U.S. came closer to breaching its debt ceiling. WTI for November delivery slipped as much as 61 cents to $103.23 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 0.5 percent to $103.84 on October 4, capping the first weekly advance in a month.
Indicative Currency Exchange Rates
EURUSD 1.3570 1.3620
GBPUSD 1.6033 1.6083
USDJPY 97.06 97.46
USDCHF 0.9042 0.9072
GBPEUR 1.1815 1.1825
USDZAR 10.0079 10.1579
USDNGN 160.45 161.20
JPYNGN 1.6531 1.7031
CHFNGN 177.45 181.45
EURNGN 217.73 221.73
GBPNGN 257.25 261.25
ZARNGN 16.03 18.03
WTI crude fell as Gulf of Mexico production resumed after Tropical Storm Karen weakened and the U.S. came closer to breaching its debt ceiling. WTI for November delivery slipped as much as 61 cents to $103.23 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 0.5
percent to $103.84 on October 4, capping the first weekly advance in a month.
NIBOR (%) LIBOR (%)
O/N 11.3750 USD 1 month 0.1733
7 Day 11.7083 USD 2 month 0.2130
30 Day 11.9583 USD 3 month 0.2429
60 Day 12.2083 USD 6 month 0.3650
90 Day 12.4583 USD 12 month 0.6186
Y/Y Consumer Inflation August 2013 : 8.2%
FX Reserves: 02 October 2013 (USD bn) 45.388
Source: Reuters, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria.
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USD/NGN 161.75/85 160.30/40 160.45/55 161.42/52