Nigeria’s inflation rate surges to 18.17% in March 2021
According to the Consumer Price Index report, recently released by the National Bureau of Statistics (NBS), Nigeria’s inflation rate for the month of March 2020, rose to 18.17% from 17.33% recorded in February 2021.
CBN Moves Against Bad Debtors to Other Financial Institutions in New Circular
Following the successful implementation of the Credit Risk Management System (CRMS) in deposit money banks across the country, The Central Bank of Nigeria (CBN) has further moved against bad debtors as it said it will extend its Credit Risk Management System (CRMS) to the other financial institutions (OFIs) in the country.
FGN Bonds
Another bearish session ensued in the FGN bond market, as investors shrugged off the positive GDP report released by the NBS earlier in the day. Supply persisted across the benchmark curve, as yields at the belly crossed the 12.00% mark (2027s and 2028s) while the long-end papers (2045s-2050s) changed hands around 13.80% levels.
Treasury Bills
The activity in the treasury bills space was muted, as the focus remained on the primary market auction floated by the DMO. The long-dated OMO maturities (Jan.-Mar. 2022 papers) continued to inch towards the 9.00% mark, with trades crossing at 8.80% levels. Offers remained for long-dated NTBs for most of the session but met with very little demand as investors expected higher rates at the primary auction.
Money Market
System liquidity saw some slight respite as refunds from previous unmet FX intervention bids saw interbank system liquidity improve to an opening position of N40bn positive. Money market rates consequently moved lower, dropping by c.38bps on the average to close the session at 12.00% and 12.25% for Open Buy-Back (OBB) and Overnight (O/N) rates respectfully.
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