Monthly Archives: May 2022

Nigeria – Fixed Income Weekly

Tight liquidity and MPR tightening drives bearish trends in Naira fixed income      The week that was (May 23-27) Q1 2022 GDP: Non-oil GDP growth rebounds strongly: The National Bureau of Statistics (NBS) put out Q1 2022 GDP data which showed that Nigeria’s economy expanded by 3.11% y/y, slower than the 3.98% clocked in Q4 […]

Nigeria – Fixed Income Weekly

The week that was (May 16-20) Tight system liquidity pressures short-term interest rates, net buying on the long-end: Money markets were tight during the week on account of large outflows to fund the monthly bond auction settlements. As a result, interbank rates closed the week at the ceiling of 12.25-12.5%. (Note: In contrast to prior […]

Introducing Nigeria 2023: Weekly Update

In their seminal book, “Why nations fail: The Origins of Power, Prosperity and Poverty” published in 2012, the economists, Daron Acemoglu and James Robinson brilliantly argued that most theories in economics fail to provide a convincing explanation of the drivers of the lived reality because they erroneously assume that basic political problems have been solved. […]

Nigeria – Fixed Income Weekly

Bulls regain control despite tight liquidity conditions, CBN Governor withdraws from presidential race and lower oil production in April.    The week that was (May 9-13) Despite tight liquidity trends, yields declined broadly along the Naira curve: Despite fairly tight liquidity conditions which drove a pick-up in funding costs (with overnight borrowing rates up 400bps […]

Nigeria – Fixed Income Weekly

Improved liquidity conditions from FAAC inflows drives money market rates lower, Naira woes continue in the real world. The week that was (May 4-6) Money market rates buckle under the weight of FAAC inflows, modest declines across the curve: Money markets were liquid during the week due to inflows from FAAC credits (NGN449billion) and OMO […]

NIGERIA – FIXED INCOME WEEKLY

Tight liquidity conditions pressures short-dated rates, long end comes off on renewed buying, oil production headaches The week that was (April 26-29) Money market rates remain subdued but bearish sentiments dominate NT-bill trading: Money market were under a liquidity strain over last week, brought about by large outflows required to settle the FGN bond/NTB auctions […]