CBN MPC seen retain benchmark rate at 14% as Offshore Sellers Spur Higher Bond Yields

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Bonds

The Bond market traded on a bearish note with yields rising higher by c.8bps due to continued offshore sell especially on the 10– and 20-year bonds. Whilst noting the relatively weak demand for bonds by locals and the continued bearishness from offshore, we expect the market to be relatively stable in the coming week, as some local client demand is expected to gradually flow into the market. Market players would also be carefully monitoring proceedings at the MPC meeting of the CBN scheduled for Monday and Tuesday. Our expectations are that the benchmark rate would be retained at 14%.

Treasury Bills

The T-bills market traded on a relatively quiet note, with yields compressing slightly by c.5bps on average. This was following the relative ease in system liquidity from the net OMO repayments into the system in the previous session. We expect yields to remain relatively stable, with no significant squeeze in system liquidity expected in the near term.

Money Market

The OBB and OVN rates fell to 7.83% and 9.00% respectively, as system liquidity remained relatively stable at c.N100bn positive. We expect rates to inch slightly higher on Monday, due to expected outflows for Wholesale FX sales.

FX Market

The Interbank rate remained stable at its previous rate of N305.85/$, with the CBN’s External reserves recovering slightly by 0.02% to $47.79bn. The NAFEX rate appreciated by 0.10% to N360.85/$. Rates in the Unofficial market however depreciated further by 0.17% to N363.00/$.

Eurobonds:

The NGERIA Sovereigns traded on a relatively flat note, with yields inching slightly higher by c.1bp on average. The 32s and 30s were the most traded and lost about –0.10pt on average.

The NGERIA corps were slightly bearish across all traded tickers except for the Access 2021s sub. which gained about 0.20pt and was last traded at 102.00. The FBNNL 21s recorded the highest losses as it dropped by about 1.00pt, down to 98.00.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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