FBNQuest FI-FX Daily Watch 13 July 2017
There was some activity at the short end of the NTB curve with yields trending downwards. However, limited activity was observed in the mid to long end. An OMO auction took place yesterday with N34.318bn sold at 18.55% for the 344-day NTB; meanwhile, the 197-day offer recorded no sale.
The FGN bond market showed limited activity as focus was on the bond auction. The DMO sold N106bn from its five, ten and 20 year benchmarks, 22% lower than its target of N135bn. Stop rates increased by an average of 10 basis points when compared with the last auction. The Eurobond market was relatively quiet.
The CBN’s daily intervention in the fx market saw a further reduction from US$0.75m to US$0.5m. Turnover on NAFEX eased from US$56m on Tuesday to US$36m. Following US Fed Chair Yellen’s comments at Congress yesterday, the US dollar index against a basket of major currencies was flat at 95.758 after retreating to as low as 95.511 the previous day, its weakest in 12 days.