Nigerian Fixed Income Market Commentary – 23rd December 2021

FIXED INCOME

Bond

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.

Treasury bill 

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%

 

Download Report Here

 

In the News

Senate Passes 2022 Budget, to Transmit Spending Plan to President Today

Nigeria’s oil revenue threatened as Shell stops Forcados exports

Global oil’s comeback year presages more strength in 2022

Wall St Week Ahead ‘Santa Claus’ stocks rally? Investors look to Omicron for direction

 

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.

 

 



Nigerian Fixed Income Market Commentary – 21st December 2021

 

FIXED INCOME

Bond

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.

Expectation

We expect similar sentiments in today’s session.

Treasury bill 

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.

Expectation

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%

 

In the News

 

 

 


Q3 2021 – MACRO-ECONOMIC OVERVIEW

  • – Inflation eased in Q3, to close at 17.01% Y­o­Y for August 2021 mainly driven by a slowdown in food prices (20.3% vs 21.03% in July) and despite the naira’s ongoing devaluation.
  • – The Monetary Policy Committee (MPC) held Monetary Policy Rate (MPR) and other parameters constant in all its meetings during the quarter.
  • – Oil prices averaged $73/barrel through the quarter while hitting a high of $79/barrel and a low of $65/barrel.
  • – FX Reserve stood at c.$36bn as at the end of Q3, c.$3bn increase from the start of the quarter.
  • – Interbank system liquidity for the quarter averaged c.N153bn, closing the quarter at c.N441bn
  • – FAAC inflows summed up to c.N2.19trn in the quarter (c.N733bn disbursed in Jul’21, c.N761bn in Aug’21 and c.N697bn in Sept’21).
  • – Closing the quarter, government borrowing stood at 84% of expected N5.2trn borrowings ­ N2.85trn raised through local borrowings and $4bn raised via Eurobond Issuance
  • – Coupon payments amounted to c.N515bn in Q3, in addition, there was a c.N561bn bond maturity and over c.N677bn rolled over in NTB.

Download the Full Report Here

 

 


COMPANY NEWS

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.