24062019 - EDO Oyegun Oshiomhole ateach others troats

Vanguard, MONDAY, JUNE 17, 2019 —21
FINANCIAL VANGUARD
Decline in stop rates on FGN bond to
persist as DMO offer N100bn
Continues from page 19
market this week.
Last week, cost of
funds rose in response
to outflow for funding
of foreign exchange
wholesale auctions and
foreign exchange
swaps by the Central
Bank of Nigeria as well
as rollover of N17.61
billion worth of treasury
bills (TBs) that
matured during the
week. The outflows
suppressed the impact
of inflow of N89 billion
from matured
secondary market
(Open Market
Operation, OMO) TBs,
prompting average
short term interest rate
to rise by 346 bpts.
Data from FMDQ
showed that interest
rate on Collateralised
(Open Buy Back, OBB)
rose by 342 bpts to 8.71
percent last week from
5.29 percent the
previous week.
Similarly, interest rate
on Overnight lending
rose by 350 bpts to 9.21
percent last week from
5.71 percent the
previous week.
Analysts at Lagos
based Vetiva Capital
Management Company
projected that the apex
bank might sell OMO
bills today leading to
further rise in cost of
funds. "With the current
level of system
liquidity, we foresee an
OMO auction in
Monday's session,
leading to a negative
close in the secondary
market at the start of
the week", they said.
External reserves
record first weekly
decline in three
months
The nation's external
reserves last week
record the first weekly
decline in three
months.
Buoyed by increased
foreign exchange
earnings courtesy high
crude oil price and
influx of dollars from
foreign portfolio
investors, the nation's
reserves have been on
the upward trend since
February 28th, 2019,
when it stood at $41.296
billion. This trend was
however halted on
June 10 when the
reserves peaked at
$45.175 billion.
Last week, the
reserves recorded its
first weekly decline of
$76 million as it fell to
$45.087 billion on
Thursday June 20th,
2019 from $45.163
billion on Thursday
June 13th, previous
week.
Meanwhile the naira
appreciated marginally
by 2 kobo at the
Investors and Exporters
(I&E) window last
week. Data from FMDQ
showed that the
indicative exchange
rate for the window
dropped marginally to
N360.49 per dollar last
week from N360.51 per
dollar the previous
week. On its part, the
CBN sustained its
weekly injection of $210
million to support
activities in the
interbank foreign
exchange market.
Treasury report chart 2: Forex & TB rates
Treasury report chart 4: Yields on FGN Bonds
Treasury report chart 1: Monthly foreign flows and Domestic Transactions
on NSE
Treasury report chart 3: Interbank interest rates