Bond Market
During the week under review, we observed a shift to a more cautious approach following a sell-off in the market; this came on the back of the OMO auctions that occurred throughout the week, the mid-week treasury bills auction and the release of the March 2013 FGN bonds auction offer circular.
Bondholders are replacing the International Monetary Fund (IMF) in bailing out some of Eastern Europe’s most indebted nations. Hungary, Romania, Serbia and Ukraine, taking advantage of record low borrowing costs, sold $7.25 billion of notes last month, snubbing fiscal requirements from the Washington-based IMF for loans.
Nigeria’s naira depreciated for the third time in four days after the Central Bank of Nigeria (CBN) paid out maturing Treasury bills, boosting money supply and freeing up local currency for buyers to seek dollars.
African countries are currently chasing international investors with many economies in the region, disclosing plans to raise dollar bonds.
Nigerian Interbank Offered Rates (NIBOR) moderated for most tenor buckets as pressure on system liquidity eased, Cowry Research Market Insight has indicated.
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