FIXED INCOME
The bond market traded on a relatively quiet note with few sell interests recorded across the curve notably on the mid-end; a couple of trades consummated especially on the 34s, 36s and 37s.
Expectation
We expect similar sentiments in today’s session.
Mixed sentiments were recorded across the NTB curve albeit with a bearish bias, interests were notable on the long end with few trades executed especially on the 27 October paper. A bit of activity was seen in the CBN Special bills space with trades passing through on the 3 Jan and 30 May maturities.
Expectation
We expect continued mixed sentiments amid a probable OMO auction by the CBN.
MONEY MARKET
OPR Rate – 14.00%
O/N Rate – 14.25%
OPR and O/N rates inclined by c.450 and c.425bps respectively following the AMCON charge by the CBN to banks.
Expectation
We expect rates to incline further on the back of funding for the bi-weekly FX auction.
FOREIGN EXCHANGE
USD/NGN
I&E Window – 415.10
CBN Interbank Rate – 379.00
Turnover $’mn – 215.29
NTB Stop Auction Rates
Date 90 Days 182 Days 364 Days
8-Dec-2021 2.5000% 3.4500% 5.3400
15-Dec-2021 2.4900% 3.4500% 5.0000
Bond Auction
Date 10 yr 20yr 30yr
17-Nov-2021 11.6500% 12.9500% 13.3000
15-Dec-2021 11.6500% 13.1000% –
Macro Indicators
Inflation 15.40% GDP 4.03%
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Disclaimer: All care has been taken in the preparation of the document and information in this document has been derived from reliable sources believed to be accurate and reliable. Parthian partners does not assume responsibility for any error, omission or opinion passed. The views and opinions expressed are for information purposes only.
FIXED INCOME
Minimal trades were executed in the bond space yesterday with mixed sentiments notable around the mid to long end albeit with a slightly bullish bias; most activity was recorded on the 28s and 50s.
We expect similar sentiments in today’s session.
The Treasury bills space opened the week relatively quiet with a bearish undertone, few sell interests were seen across the NTB curve with few trades done as bids remained scarce. Activity was notable across the Special bills maturities with a couple of trades passing through especially on the 4th April and 30 May papers.
We expect to see mixed sentiments today’s session amid the c.N45bn OMO inflow expected to hit the system today.
MONEY MARKET
OPR Rate – 12.00%
O/N Rate – 12.50%
OPR and O/N rates inclined by c.75bps each.
Expectation
We expect rates to decline slightly on the back of the anticipated FAAC inflows.
FOREIGN EXCHANGE
I&E Window CBN Interbank Rate
USD/NGN 414.80 379.00
Turnover $’mn 360.18
NTB Stop Auction Rates
Date 90 Days 182 Days 364 Days
8-Dec-2021 2.5000% 3.4500% 5.3400
15-Dec-2021 2.4900% 3.4500% 5.0000
Bond Auction
Date 10 yr 20yr 30yr
17-Nov-2021 11.6500% 12.9500% 13.3000
15-Dec-2021 11.6500% 13.1000% –
Macro Indicators
Inflation 15.40% GDP 4.03%
PARTHIAN PARTNERS SUCCESSFULLY REDEEMS DEBUT N20BN SERIES 1 (TRANCHE A & B) COMMERCIAL PAPER
Parthian Partners Limited, Nigeria’s foremost inter-dealer brokerage firm, has announced the successful maturity and redemption of its debut Series 1 Tranche A & B Commercial Paper under its NGN 20billion Issuance Programme. The NGN 15billion Series 1 which was issued earlier this year on the FMDQ Exchange, matured on the 26th of November while the NGN 5billion Series 2 matures on the 30th of December 2021. The issuance represents the first by an Inter-dealer brokerage firm in the Nigerian capital market on the FMDQ Securities Exchange Limited (“FMDQ”) platform.
Parthian Partners Limited is rated Bbb (stable outlook) by Agusto & Co and the company’s Commercial Paper Programme is rated A1- by DataPro, evidencing the institution’s good funding profile, improving profitability and support from the owners, as well as good capitalization.
The issuance was led by Coronation Merchant Bank, Renaissance Securities (Nigeria) Limited and Afrinvest West Africa Limited and was largely subscribed to by investors in the Banking, Asset Management, Pension Fund Administration, and Insurance sectors in Nigeria.
On the successful redemption, Oluseye Olusoga, Group Managing Director of Parthian Partners Limited, stated, “On our inaugural issuance, institutional investors entrusted us as the premier inter-dealer broker in the domestic market. We are pleased to repay this trust and redeem our inaugural public issue at its maturity. We look to further entrench our market leading position and develop our relationship in the capital market as a responsible and dynamic issuer.”
Parthian Partners Limited is a member of the Parthian Group, duly licensed by the Securities and Exchange Commission (SEC) to operate as an inter-dealer broker in Nigeria. The Issuer is one of the six FMDQ Securities Exchange Limited (FMDQ) registered inter-dealer brokers in Nigeria. Parthian Partners provides wholesale brokerage services for transactions among market dealers and investors, facilitating trading in municipal bonds, treasury bills, corporate bonds, Eurobonds and local contractor bonds. Parthian Partners remains committed to proving itself as a market leader in fixed-income, equities and structured finance both in Nigeria and across Africa.