Nigerian Bank Eurobonds Maintain Rally as First Bank Announces Call on its 2021 Maturity


The NGERIA Corps remained all bid following the Announcement of the call (early redemption) of $450m of the FBNNL 21s by July 23. The most Interests remained on the ZENITH 22s, UBANL 22s, FIDBAN 22s and ETINL 24s, which were all traded at higher prices during the session.


The FGN Bond market remained relatively flat, with yields marginally higher by c.2bps on the day. We witnessed the most activity on the mid to long end of the curve, with some buy interests on the 34s and some sell interests on the 37s.

We expect the market to trade on a relatively quiet note tomorrow, as market players look forward to the bond auction scheduled for Wednesday.

Treasury Bills

The T-bills market
traded on a mildly bullish note, with demand interests notable on the mid to long end of the curve. Yields were consequently lower by c.4bps on the day.

We expect the recent demand interest to persist in absence of an OMO auction by the CBN.

Money Market

Rates in the money market inched slightly higher by c.2pct, as banks funded for the wholesale FX intervention by the CBN. The OBB and OVN rates consequently ended the session at 9.86% and 10.43%

We expect rate to dip slightly lower tomorrow, as there are no funding pressures anticipated.

FX Market

At the interbank, the Naira/USD rate fell by 5k to N306.90/$ at the spot market, while the SMIS rate rose by 61k to N357.73/$. The NAFEX rate at the I&E window declined further by 11k to N360.38/$, whilst the market turnover dipped by 63% to $109m. At the parallel market, the cash and transfer rates closed unchanged at N359.80/$ and N362.50/$ respectively.


There were improved sentiments in the NGERIA Sovereigns in today’s session, with yields lower by c.3bps on the day.

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