FBNQuest FI-FX Daily Watch 13 April 2018
Opening market liquidity on Thursday was N6596bn (positive). There was an inflow of N476bn from an OMO maturity which pushed liquidity to N1.1trn during trading hours. Interbank rates closed within a range of 3%-9%. At an OMO auction yesterday, the CBN raised N500bn from the sale of the 112-day and 245-day paper at stop rates of 12.20% and 13.99% respectively. On the secondary market for NTBs, there was a pick-up in yields for selected maturities.
The FGN bond market was active, yields dipped significantly at the short-end of the curve. This was largely due to the slowdown in inflation for March reported yesterday. As for the Eurobond market, yields showed no clear direction.
The CBN’s daily fx intervention was again US$0.5m at N305.05. Turnover at the NAFEX increased from US$243m on Wednesday to US$296m. Indicative rates ranged from N355 to N361. The USD rose against a basket of the other major currencies on Thursday as market sentiment recovered after President Trump toned down his threats of military action in Syria.