• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      CBN says cryptocurrency ban in interest of Nigerians

      February 25, 2021

      Companies-in-Action

      Zenith Bank in strong operational performance as profit rises 10.4% to N230.56bn in FY20

      February 25, 2021

      Companies

      United Capital posts strong numbers as earnings rise 50% to N12.87bn in 2020

      February 23, 2021

      Finance

      CIBN revives mentorship initiative for bank workers

      February 20, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Insurance Business

      Enterprise risk management surges amid pandemic, RIMS reports

      February 25, 2021

      WORLD BUSINESS & ECONOMY

      Hyundai to recall 82,000 electric cars over battery malfunction

      February 25, 2021

      Frontpage

      Global health insurance premiums fall amid pandemic, says new report

      February 24, 2021

      Frontpage

      Insurance M&A record highest growth in Africa, Middle East in 2020

      February 23, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Oil and Gas

      REA delivers 100kW hybrid solar mini grid to Edo community

      February 25, 2021

      Oil and Gas

      OPL 310: LEKOIL engages Optimum Petroleum over CRSA agreement

      February 25, 2021

      Frontpage

      Nigeria still losing 200,000bpd crude daily as NNPC enlists army’s intervention

      February 25, 2021

      Frontpage

      Nigeria to sell 170MW electricity capacity to Togo from Calabar plant

      February 24, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      Coronation MB analysts project sharp rates rise after Nigeria recession exit

      February 25, 2021

      Analyst Insight

      How NITDA can further foster data protection compliance in Nigeria

      February 22, 2021

      Analyst Insight

      Do we need more start-ups in insurance?

      February 16, 2021

      Analyst Insight

      Naira, PMI’s and Inflation in focus

      February 16, 2021

Finance

Naira steady on street but CBN’s Special Bills leave market adrift in search of direction

December 15, 2020289 views0 comments

By Charles Abuede

 

  • Fixed income market in bearish posture
  • Prevailing uncertainty in the market and recent sell-offs expected to impact marginal rates in the offer northward

FX: The Naira kept its balance on the unofficial street currency market closing at N375 against the United States dollar while turnover spiked by 22.4 per cent in the Investors & Exporters Window (I&EW) to a weekly average of $161.4 million as against the $131.8 million recorded in the preceding week. Nevertheless, the Naira appreciated further by 0.15 per cent and strengthened by N1 per dollar in the I&EW to close at N394 per dollar from N395 per dollar in the prior week. Most participants maintained bids between N382 and N408.19 per dollar.

Read Also:

  • Government’s forex policy direction still keeps foreign investors from…
  • Jumia’s road to profitability steady as gross profit rises 22% to €92.8m in FY20
  • Positive buying sentiments in large-cap stocks drive up market cap,…
  • Nigeria, Egypt, Kenya, South Africa lead Africa’s home-tech market, with…

Moving on, money market rates remained in single digits, as the Overnight and Open Buy Back closed at 0.88 per cent and 0.5 per cent from 4.25 per cent and 3.63 per cent respectively in the prior week.

Treasury Bills:

Activities in the fixed income market were largely bearish and speculative as market players sought clarity regarding the sale of “Special Bills” to banks as announced by the CBN. Following large sell-offs witnessed at the Bond, NT-bill and OMO-bill markets, average yield across the fixed income market spiked by 41 basis points week on week to settle at 1.9 per cent from 1.5 per cent in the prior week. The average yield at the NT-bill market soared for the week to 0.5 per cent from 0.1 per cent in the prior week as investors sold off their bills in anticipation of the influx of the “Special Bills”. Investors lost interest in all papers save the 14 OCT 2021 which closed the week bullish.

In a similar tale, the OMO-bill market closed bearish as offers filtered in all through the week. The average yield in the OMO-bill market moved northward by 24 basis points week on week to 0.4 per cent from 0.2 per cent.

Furthermore, in its scheduled Primary Market Auction (PMA), the CBN offered and allotted bills worth N50.9 billion of N102.9 billion worth of subscription received at 0.010 per cent (prev. 0.022 per cent) for the 91-DTM, 0.6 per cent (prev. 0.09 per cent) for the 182-DTM and 3.2 per cent (prev. 0.15 per cent) for the 364-DTM. Average bid-to-cover ratio for the auction stood at 4.5x as investors scurried for the sparse bills offered.

Furthermore, the anticipated “Special Bills” worth N4.1 trillion was issued to Deposit Money Banks on Thursday by the Apex Bank at 0.5 per cent for 81-DTM (21 March 2021). Nevertheless, the market is yet to grasp the full nature of the “Special Bills” and its modalities.

Bond Market:

The Bond market was not spared, investors sold off holdings following the uncertainty prevailing in the market, thereby, and elevating average yields by 65 basis points to 4.7 per cent from 4.1 per cent at the close of trading in the prior week. The Debt Management Office (DMO) in its bond offer secular is scheduled to sell bonds worth N60 billion across the 12.50 per cent FGN MAR 2035 and the 9.80 per cent FGN JUL 2045 papers.

Share on Facebook Tweet Email
Tagsbond market CBN Fixed Money Naira PMA Treasure Bill
PreviousAfter bullish November, FSDH analysts say domestic equities set for a pullback
NextCovid-19 knocks Africa’s $24.4bn private equity fund industry

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Coca-Cola, SWEEP foundation flag off environmental sustainability programme
  • Petrol: CSOs canvass labour union’s support for deregulation
  • Lions’ Den 2021: An opportunity for promising Nigerian entrepreneurs
  • Nigeria bourse in red as selloffs in banking, consumer goods stocks see bears return  
  • African Alliance paid N967m in claims in first 40 days of 2021, MD reveals

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Oil prices surge above $70, highest since 2014 amid U.S.-Iran tensions

Frontpage May 7, 2018

1
2

FG sets up panel to recover N614bn from 35 states

Frontpage August 22, 2019

3

Nigeria economy sustains positive growth since emergence from recession in Q2 2017

Frontpage February 27, 2018

4

BREAKING: Nigeria govt declares Lagos-Ibadan free train service for commuters 

Frontpage November 30, 2019

5

Transcorp Group names Ozigbo President/CEO in wide ranging board, executive appointments

Frontpage October 16, 2018

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.