FBNQuest FI-FX Daily Watch 12 September 2017
Interbank rates traded between 16% and 25% levels. At an OMO auction of NTBs on Monday, the CBN raised N20m from the sale of 87 and 192 day maturities at stop rates of 16.00% and 17.95%. On the secondary market, there was some activity as yields picked up on selected traded maturities.
The FGN bond market was relatively quiet, and yields were generally flat. However, for a few traded maturities, a marginal pick up was observed. On the Eurobond market, yields showed no clear direction.
The CBN’s daily fx intervention was again US$0.5m, at N305.50. Additionally, there was a wholesale fx SMIS intervention. Turnover on NAFEX declined from US$231m on Friday to US$110m. Indicative rates ranged from N350 to N361. The USD gained ground, and oil prices (spot and futures) firmed yesterday on the view that the impact of Irma would be less than feared. Additionally, there was supportive talk of a possible extension of OPEC’s supply cuts beyond March.