FBNQuest FI-FX Daily Watch 17 July 2017
In the absence of an official figure on Friday, we estimate market liquidity at –N70bn (negative). The overnight rate moved up due to funding for the FGN bond auction. Trading in the NTB market was light. At the OMO auction on Friday, N26bn was raised from the sale of the 353-day bill at 18.55%.
Movement in yields in the FGN bond market was limited to a modest uptick for instruments in the middle and long end of the curve. There was a similar trend for Nigerian Eurobonds.
The CBN’s daily intervention in the fx market was again US$0.5m. Turnover on NAFEX fell from US$121m on Thursday to US$65m. The weekly data for turnover shows US$407m for the week ending 07 July, compared with the previous week’s US$312m. The USD had a poor day (other than vs JPY) on reflection on the ECB’s stance on tapering. It seems the ECB is being given credit for not rushing into a statement on when, and by how much it is to unwind its QE programme.