During the review week, the domestic fixed income market witnessed continuous interest decline in FGN securities mostly from offshore investors and consequent selling activities. The release of the December 2014 FGN bonds auction offer circular by the DMO and OMO bills redemption by the CBN equally affected market behaviour albeit marginally.
The Central Bank Of Nigeria on the authority of The Debt Management Office on behalf of the Federal Government Of Nigeria Offers for Subscription by Auction and is authorized to receive applications for
During the review week, the fixed income market was largely characterized by sustained bearish sentiments as investors remained skeptical due to weakening economic indices, that is, continuous decline in oil prices, depletion in foreign reserve and depreciation of the Naira, which have reduced the attractiveness of the Nigerian investment space. This, alongside issuance of treasury bills and the Cash Reserve Ratio (CRR) debit equally influenced market behavior.
The Central Bank of Nigeria (CBN) is scheduled to hold Treasury Bills (T-Bills) Primary Auction on the 3rd of December, 2014. T-Bills worth a total of NGN129.18bn will mature, while an equal sum will be issued in 91-day, 182-day and 364-day instruments. The CBN is expected to auction NGN27.85bn, NGN30.00bn and NGN71.32bn in 91-day, 182-day and 364-day instruments respectively.
Besides the OMO bills auction by the CBN, the major highlight of the review week was the meeting of the Monetary Policy Committee (MPC), which significantly influenced the direction of activities in the market.
During the review week, the fixed income market was largely characterized by sustained bearish sentiments as investors’ remained skeptical due to weak economic indices, that is, continuous decline in oil prices and Naira depreciation, which have reduced the attractiveness of the Nigerian investment space. This, alongside issuance of treasury bills and statutory allocation from FAAC influenced market behavior, albeit marginally.
The activity of the week under review was influenced by 1) the November 2014 FGN bond primary market auction held by the Debt Management Office (DMO); 2) the release of October inflation figures (headline: 8.10%); 3) issuance and maturity of OMO bills– which influenced liquidity levels and also affected market behavior
The Federal Government of Nigeria (FGN) through the Debt Management Office (DMO) will be conducting a bond auction on Wednesday 12th November, 2014 at the primary bond market. Three major instruments (FGN 3-year, 10-year and 20-year bonds) are to be auctioned as scheduled for a total amount of NGN65bn and are all re-openings.