US equities rise, bonds yields stable as investors remain cautious over lack of clear direction
US Stocks rose, bonds yields were steady as markets continue to remain volatile with investors threading cautiously after initial optimism that Fed may temper down on rate hikes. Consequently, the S & P 500 gained 0.40% to close at 4,297.14, Nasdaq 100 rose by 0.62% to 13,128.05 while DOW climbed 0.45% to close at 33,912.44. At the same time, the yield on 10-year USTs was stable at 2.79%. Meanwhile, Brent crude fell 0.6% to $94.55.68 a barrel as investors prepare for a likelihood of rising supply as demand dwindles while Gold was little changed at $1,789.60 an ounce.
US Stocks rose, bonds yields were steady as markets continue to remain volatile with investors threading cautiously after initial optimism that Fed may temper down on rate hikes. Consequently, the S & P 500 gained 0.40% to close at 4,297.14, Nasdaq 100 rose by 0.62% to 13,128.05 while DOW climbed 0.45% to close at 33,912.44. At the same time, the yield on 10-year USTs was stable at 2.79%. Meanwhile, Brent crude fell 0.6% to $94.55.68 a barrel as investors prepare for a likelihood of rising supply as demand dwindles while Gold was little changed at $1,789.60 an ounce.
Bunds open weaker following trend from yesterday. The 10Y touched a high of 0.93% before dropping to 0.92%, 1bp down day-on-day. Peripherals mirrored the move on bunds with a relatively weak open;10Y BTPs yields went as high as 2.86% before retreating to 2.85%, 1 basis point firmer intraday. Stocks advanced as investors took a bet on a tone down in Fed’s interest rate hike campaign. Consequently, the Stoxx 600, opened marginally higher at 442.81 compared to previous session’s closing of 442.35.
Bunds open weaker following trend from yesterday. The 10Y touched a high of 0.93% before dropping to 0.92%, 1bp down day-on-day. Peripherals mirrored the move on bunds with a relatively weak open;10Y BTPs yields went as high as 2.86% before retreating to 2.85%, 1 basis point firmer intraday. Stocks advanced as investors took a bet on a tone down in Fed’s interest rate hike campaign. Consequently, the Stoxx 600, opened marginally higher at 442.81 compared to previous session’s closing of 442.35.
Activity in the Nigerian local Secondary Market for Bonds was quiet amid release of inflation figure for July that came out at 19.64% (previous: 18.60%) & Auction stop rates. The whole curve was mostly stable apart from improved offers seen on FGN 27s and dampened yields on the 42s.Intraday, average yields were largely flat across board. Consequently, FGN 27s closed at an offer rate of 12.57% ,7 basis points up from previous level of 12.50% while 42s closed at an offer rate of 13.80%, 3 bps down from previous level of 13.83%. Meanwhile, stop rates at the Auction printed at 12.50% (previous: 11.00%), 13.50% (previous: 13.00%) and 14.00% (previous: 13.75%) for FGN 25s, 32s & 42s respectively. Activity in the Secondary Market for Treasury bills was calm amid a relatively steady system liquidity level. Most of the activity hovered around OMO and SPEB maturities. Consequently, discount rates on 29th of August 2022 SPEB & 20th of December 2022 OMO were at 12.00% and 11.40% respectively. Demand for OMO and SPEB bills may persist pending a significant drop in their discount rates. Finally, the exchange rate between the naira and the US dollar closed at N427.88/$1 at NAFEX compared to previous session’s level of N427.92/$1, an appreciation of circa 0.01%.