FBNQuest FI-FX Daily Watch

Opening market liquidity on Tuesday was N76bn (positive) due to a debit for a wholesale fx SMIS and an NDIC debit of N80bn. Interbank rates closed within a range of 20% -22%. There was no OMO auction yesterday. On the secondary market for NTBs, yields were flat for most maturities.

The FGN bond market was fairly active; yields picked up for most maturities across the curve. In the Eurobond market, there was a dip in yields for all maturities under our coverage.

The CBN’s daily fx intervention remained US$0.5m, at N305.15. Turnover at the NAFEX window increased from US$277m on Monday to US$286m. Indicative rates ranged from N330 to N361. Oil prices were little changed on Tuesday, with Brent futures retreating after hitting US$71/b, as the USD recovered from earlier losses. On a visit to the US, the Saudi crown prince indicated that Riyadh and Moscow are working on a long term alliance of more than 10 years to underpin the market and contain price swings.

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