24 July 2018, Sweetcrude, Lagos — The local and international financial market products and services update. NIGERIA: The National Bureau of Statistics on Monday said the Consumer Price Index, which measures inflation rate, dropped by 0.37% points from 11.61 in May to 11.23 in June.
The bureau said this in the CPI report, which was made available to journalists in Abuja. It stated that this was the 17th consecutive month since January 2017 that the index would be recording continuous decline. The report read in part, “The Consumer Price Index, which measures inflation, increased by 11.23% year-on-year in June 2018. “This is 0.37% points less than the rate recorded in May 2018 (11.61%), and represents the seventeenth consecutive disinflation since January 2017.” The report stated that the urban inflation rate eased to 11.68% year-on-year in June, from 12.08% recorded in May, while the rural inflation rate also eased to 10.83 percent in June from 11.20% in May. On a month-on-month basis, the urban index rose by 1.24% in June, up by 0.14 from 1.10% recorded in May, while the rural index also rose by 1.23% in June, up by 0.15% from the rate recorded in May.
FX: Market kicked off the week with little activity in terms of liquidity in the interbank market. Traded range remains at $/N 361 – 363 level. Bid tone in the market has remained persistent, with the market falling back on CBN’s readiness to support it in terms of FCY liquidity if and when necessary. The daily average turnover dropped week-on-week by 13.31% from $171.21m to $148.42m.
FIXED INCOME: Very quiet start to the week in both bonds and bills. June inflation prints at 11.20% (-40bps) did not incite much action either.
Few inquiries seen were from buyers and more towards t-bills because of current liquidity condition (cN150bn long). We expect more of the same today.
CHINA: China unveiled a package of policies to boost domestic demand as trade tensions threaten to worsen the nation’s economic slowdown, sending stocks higher.
From a tax cut aimed at fostering research spending to special bonds for infrastructure investment, the measures announced late Monday following a meeting of the State Council in Beijing are intended to form a more flexible response to “external uncertainties” than had been implied by budget tightening already in place for this year.
U.S: The dollar ticked up slightly on Tuesday, adding to gains made in overnight trade after U.S. Treasury yields rose on expectations the Federal Reserve would persist with its rate hikes this year.
The dollar index .DXY, a measure of the currency against a basket of six rivals, edged 0.05% higher at 94.707 on Tuesday compared to the previous day.
A jump in benchmark 10-year U.S. Treasury yields to a five-week high had provided support to the dollar in U.S. trade on Monday. The surge in yields came despite criticism from President Donald Trump about the impact of the strength of the greenback and Federal Reserve interest rate rises on the economy.
COMMODITIES: Oil traded near the lowest level in a month as concerns that economic turmoil could slow global demand outweighed expectations for a seasonal decline in U.S. crude stockpiles.
Prices in New York were little changed after front-month futures closed at the lowest level since June 21 on Monday. Escalating trade conflict between the U.S. and China threatens to derail growth across the globe, raising speculation that crude demand could be affected. Meanwhile, America’s oil stockpiles are forecast to have fallen for the second time in three weeks, according to a Bloomberg survey.
Macro Economic Indicators
Inflation rate (Y-o-Y) for May 2018 11.20%
Monetary Policy Rate current 14.00%
FX Reserves (Moving Avg Bn $) as at July 20, 2018, 47,388
Money Market Highlights
30 Day 13.2010
90 Day 13.9356
180 Day 15.4089
USD 1 Month 2.06900
USD 2 Months 2.17938
USD 3 Months 2.34156
USD 6 Months 2.52425
USD 12 Months 1.72400
Tenor Maturity Yield (%)
91d 18-Oct-18 11.30
182d 17-Jan-18 12.28
364d 04-Apr-19 13.38
2y 13-Feb-20 13.51
3y 15-Jul-21 13.80
5y 27-Jan-22 13.75
Indicative Currency Exchange Rates
USDNGN (I&E) 360.00 362.00
EURUSD 1.1592 1.1794
GBPUSD 1.3009 1.3210
USDJPY 111.21 112.00
GBPEUR 1.1110 1.1314
USDZAR 13.3724 13.5759
EURNGN 419.50 421.06
GBPNGN 470.66 480.5