FBNQuest FI-FX Daily Watch 13 October 2017
Opening market liquidity on Thursday was N244bn (negative). OMO bills of N127bn matured. Meanwhile, at an OMO auction, the CBN raised N64bn from the sale of the 196-day paper at a stop rate of 17.85%. (The rate was 17.93% at the auction of 28 September.) A downward trend was observed on selected tenors.
The FGN bond market was relatively active, and yields contracted at the mid to long end of the curve. Fidelity Bank raised US$400m in the Eurobond market in a refinancing exercise.
The CBN’s daily fx intervention was again US$0.5m, at N305.05. Turnover on NAFEX rose from US$253m on Wednesday to US$341m. Indicative rates ranged from N310 to N362. Oil prices slipped on Thursday as US fuel inventories rose. OPEC is widely expected to extend its accord on supply cuts beyond the current expiry date of March 2018.