FBNQuest FI-FX Daily Watch 03 October 2017
Opening market liquidity on Friday was N116bn (negative). Interbank rates rose to 20% during trading hours due to funding for the N243bn FGN bond auction. However, they dipped significantly following the N305bn FAAC inflow. There was limited activity on the secondary market for NTBs, and yields trended downwards across traded maturities.
The FGN bond market was relatively active. Yields trended downwards across selected maturities; steeply on the Apr ’37s for the second day in succession. On the Eurobond market, there was a general dip in yields.
The CBN’s daily fx intervention was again US$0.5m, at N305.75. Turnover on NAFEX rose from US$258m on Thursday to US$340m. Indicative rates ranged from N350 to N362. The US dollar gained some ground against the euro and the yen following the release of a leading manufacturing index which rose to its highest level since 2004. The ISM PMI rose to 60.8 in September, above economists’ expectations of 58 and therefore boosting hawkish bets on the US economy.