26 October 2011, Sweetcrude, Lagos- International News
EUR – The euro is holding stable going into the EU Summit to solve the zones debt crisis. Trading in the currency was still haunted by all kinds of rumours on the EUR Summit. Uncertainty remains high, but the euro held up quite well on the back of USD weakness
CNY – The Chinese Premier, Wen Jiaboa said that the economic policy will be fine tunes as needed and the industry ministry said it is studying “simulative policies” for smaller companies as global slowdown threatens growth.
JPY – The yen approached a post World War II record versus the USD as concerns the Europe’s leaders will struggle to find a solution to the debt crisis at the emergency summit today spurred demand for the safest asset.
The CBN governor says he hopes to see the usd/ngn at the mid-point of N155, at the end of the financial system reforms exercise, as he reiterated the need for federal fiscal discipline. Sanusi, who also expressed determination to halt any likely run down on the foreign reserves, through appropriate policies, emphasised the need for the fiscal side to complement their action, through fiscal consolidation. “We are determined to be in total control of the market and not allow speculators take charge and determine rates
Bonds – Liquidity returned to the markets today in what was a very volatile session. Price discovery was difficult as was the determination of market direction. We currently have a very distorted curve with the 20yr trading below the 2, 3 and 5yr. We expect continued volatility until the market settles or until the curve establishes its true points.
Bills – The market tried to get going today as well, a largely bearish sentiment as the auction comes up tomorrow with some players thinking of switching. Tomorrows result will be important in driving market as
a high result will continue to push bearish sentiment.
Money Market – OBB is stable at 14.00% with unsecured rates averaging 15.00%.liquidity remains
NIBOR(%) LIBOR (%)
O/N 15.0417 USD 1 month 0.2447
7 Day 15.5833 USD 2 month 0.3266
30 Day 16.0833 USD 3 month 0.4222
60 Day 16.5417 USD 6 month 0.6122
90 Day 16.9583 USD 12 month 0.8631
Y/Y Consumer Inflation Sep 2011 : 10.30%
FX Reserves: 21 October 2011 USD33.67bn
Source: FMD and CBN