FBNQuest FI-FX Daily Watch 20 September 2017
Opening market liquidity on Tuesday was –N59bn (negative). Interbank rates traded between 9% to 12% levels. At an OMO auction of NTBs yesterday, the CBN raised N17bn from the sale of the 79-day and 184-day maturities at stop rates of 16.00% and 17.95% respectively. On the secondary market for NTBs, yields narrowed at the short-end of the curve.
On the FGN bond market there was a pick-up in yields at the short and long-end of the curve. As for the Eurobond market, yields showed no clear direction.
The CBN’s daily fx intervention was again US$0.5m, at N305.40. Turnover on NAFEX declined from US$125m on Monday to US$103m. Indicative rates ranged from N350 to N362. The USD weakened against a basket of currencies on Tuesday in advance of the conclusion of a Federal Reserve meeting where policymakers are expected to decide on the reduction of its US$4.2trn worth of bond holdings and gives views on inflation (with the attendant influence on rates).