FBNQuest FI-FX Daily Watch 06 April 2018

FBNQuest FI-FX Daily Watch 06 April 2018

Opening market liquidity on Thursday was N716bn (positive), boosted by a substantial OMO maturiy. Interbank rates closed within a range of 4%-9%. At an OMO auction yesterday, the CBN raised N759bn from the sale of 91-day and 245-day paper at lower stop rates of 12.50% and 14.30% respectively. On the secondary market for NTBs, there was an uptick in yields for selected maturities.

The FGN bond market was fairly active, and yields picked up for most maturities across the curve. The Eurobond market saw healthy demand for the sovereigns, for which yields narrowed.

The CBN’s daily fx intervention was again US$0.5m at N305.10. Turnover at the NAFEX soared from US$170m on Wednesday to US$572m. Indicative rates ranged from N315 to N361. The USD rose to a three-week high against the JPY on Thursday. Additionally, equity markets jumped as fears eased of a trade war between China and the US after Washington expressed a willingness to negotiate.

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