· EUR –The euro clung to gains eked out in volatile overnight trade but looked increasingly vulnerable as European leaders remained deeply divided ahead of a weekend summit on the region’s debt
· CHF: the Swiss franc climbed against the euro amidst increased risk aversion due to concerns about Germany and France not reaching an agreement on how to deal with Europe’s debt crisis.
· ZAR: the rand weakened against the dollar, hovering around a key support level that, if breached, could see it tumble to 8.27, as happened in its previous session..
· Bonds – The results of Wednesday’s auction came in yesterday with the 7yr closing at 18.00%, the 20yr yield which has been resisting the upward trend will likely rise. Trading activity continued to be very patchy and volatile as the market tried to find new levels.
· Bills – In continuous reaction to the spike in rates at the primary auction, secondary market trading was very thin yesterday. With the market still struggling to come to terms with the 275bp rate hike at the extra ordinary MPC meeting, the credit to many banks of high yielding stabilisation securities and the 17.00% 58 day OMO offering.
· Money Market -OBB is stable at 14.00% with unsecured rates averaging 16.00% as liquidity remains tight. The FAAC funds should hit the system sometime next week and this will help boost liquidity, but we can also expect the CBN to offer OMO bills and try and soak up this liquidity
· NGN Foreign exchange – CBN announced plans to intervene in the market with $200mio. Banks were invited to submit bid and offer quotes. Amount sold was $103mio with the cut off at $/NGN150
HI Low Clos Prev.Close
USD/NGN 159.80/90 156.80/90 159.50/60 157.30/40