May 17, 2022/Coronation Research
- Opening market liquidity was reported at N532.5bn on Friday (06 May ‘22). Overnight and repo rates closed within a range of 4.5-6.5%. The average NTB yield increased by 4bps w/w to close at 3.7%. Meanwhile, the average yield for OMO bills decreased by -12bps w/w to close at 4.1%. At the OMO auction, the CBN offered and allotted N50.0bn worth of OMO bills to participants and maintained stop rates across the three tenors.
- As for the secondary market for FGN bonds, the average yield increased by 12bps w/w to close at 11.3%.
- At the Eurobond market, yields also trended upward for all sovereigns under our coverage, increasing by 76bps w/w to 10.7%.
- According to the US Bureau of Labor Statistics, headline inflation in the US declined to 8.3% y/y in April ‘22 compared with 8.5% y/y recorded in March ’22. However, Inflationary pressure was significant in the prices of gasoline (43.6% y/y), energy (30.3% y/y), used cars and trucks (22.7% y/y), new vehicles (13.2% y/y), food (9.4% y/y), and shelter (5.1% y/y).
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