EUR: The euro struggled to find fans in Asia on Thursday, due to renewed fears of contagion in Europe, while the U.S. dollar remained on the defensive as Washington showed no signs of progress in getting a debt agreement.
NZD: The New Zealand dollar rose after its central bank warned interest rates will likely rise soon, while renewed fears of euro zone contagion and on-going uncertainty about U.S. debt talks kept the Australian near a 29-year high.
CNY: The yuan rose slightly against the dollar on Thursday, even after the Chinese central bank set a weaker mid-point as investors expect more dollar weakness ahead.
Bonds – Market recorded an unexpected liquid and bullish session today with focus on the 20yr 10.00% FGN JUL2030, illiquidity of the 20yr bond was put to test today as it closed 16bps lower than opening levels, this is contrary to expected correction across the yield curve due to the hike in MPR to 8.75% yesterday, other parts of the curve remained flat though.
Bills – Yields also came off about 25bps across the curve in today’s session with auction cut-off rates coming out higher than previous levels but lower than expected cutoff levels. The 91, 182 & 364days closed at 7.49%, 8.17 and 9.0575% respectively. We expect the unfilled demand at the auction to spill into the secondary market today backed by market liquidity.
Money Market – O/N rates went up 100bps to 8.00% in reaction to the hike in MPR by 75bps.
Interbank/WDAS – $400m was sold at yesterday’s WDAS auction with demand at $518.54m while CBN intervened at $/NGN151.96. $16.86m and $2.99m were sold at the 1mth & 2mth forwards and closing at 0.9800 and 2.4322 points respectively.
Hi Low Close Prev.Close
USD/NGN 152.95/05 152.20/30 152.80/90 152.25/35