Outstanding FGN bonds increased N52.65bn or 1%, to settle at N4.89trn from N4.84trn recorded in the previous month. Market capitalisation increased by N60.51bn, to close at N4.47trn or 92% of face value, indicating increased demand for long term securities. Meanwhile, T.bills outstanding settled at N6.51trn in the review period; N232.28bn or 3.70% more than the previous month’s value.
Net debt issuance4 for the review period was negative at N108.92bn, due to the N100.84bn coupon payment on four (4) FGN bond series. Maturity profile of Sovereign domestic debt shows that 44% of total debt will mature within one (1) year and 55.30% within three (3) years
Money Market (Repos/Buy-Backs and Unsecured Placements/Takings)
Turnover in the Secured markets (Repos/Buy-Backs) clocked N2.25trn; up N327.67bn or 17% from the value recorded in June. In the Unsecured markets (Placements/Takings), turnover settled at N1.45trn; an increase of N500.71bn or 53% from the value recorded in the previous month. Liquidity squeeze in the money market initially drove rates (Open Buy-Back and Overnight) to 29%.
However, there was a reversal at the tail end of the month as rates fell to 7%. First Bank of Nig. Ltd, Access Bank PLC and Skye Bank PLC occupied the 1st, 2nd and 3rd positions respectively in Repos/Buy-Back transactions.
Inter-Member trades dominated this market with all trades executed by the top three (3) accounting for 34% of the market share. United Bank for Africa PLC, Skye Bank PLC and Ecobank Nig. Ltd occupied the 1st, 2nd and 3rd positions respectively in Unsecured Placements/Takings, representing about 54% of the trades in this category. Trades between Dealing Members accounted for about 99% of this market share.
No trading occurred in the period January to July 2015 for Repos/Buy-Backs and Unsecured Placements/Takings under the Dealing Member-Client trading category, nor for T.bills, Bonds, Repos/Buy Backs and Unsecured Placements/Takings under the Dealing Member – CBN trading category
Market Surveillance
Total trading activities in the fixed income market for the month of July came to 553,112; 164,504 or 30% above the value recorded in June. RFQs accounted for 98% of total trades; made up mostly of T.bills, which took up 99.8% of the total RFQs.
Accepted request for quotations (RFQs) on T.bills came to 2.42% while 86.37% was recorded for FGN bonds § AFO’s acceptance rates for T.bills and FGN bonds were 98%. This was 1% up for T.bills and 1% down for FGN bonds from the previous month
