RateCaptain
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us
No Result
View All Result
Subscribe
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us
No Result
View All Result
RateCaptain
No Result
View All Result
Home Economics

Dollar Priced 30bps in the U.S Money Market as Feds Prepare to Hike Interest Rate

Rate Captain by Rate Captain
January 28, 2022
in Economics, Money Market, News
Reading Time: 2 mins read
A A
0
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

AlsoRead

IMF- Global Economy growth is expected to be slow in 2023

Breaking News: All flights cancelled as aviation handling company strikes indefinitely.

Breaking: Nigeria’s Inflation surprisingly plunged to 21.34% in December 2022

The dollar gained in the early hours of Friday morning and is currently on track to have largest surge in a week in the last seven months. The gain was due to the projection of interest rate spike in the United States of America (USA).

After the Federal Reserve meeting, the money market priced 30 bps of rate hikes in March and more than 120 bps in cumulative increases before the end of the year.

According to  Commerzbank strategists, “The market has interpreted the Fed chair’s comments in a hawkish manner even though (Jerome) Powell’s comments has mainly affected the expectation of the speed of the rate cycle, but not so much the extent of this cycle,”

However, the euro declined on Friday, however the single currency creeping marginally higher to $1.1152 from Thursday’s 20-month low of $1.1131.

Data including U.S. employment cost index and University of Michigan sentiment surveys on Friday is likely to reaffirm the Fed’s hawkish stance.

Meanwhile, The yen hovered at 115.43 to the dollar while the Australian and New Zealand dollars languished – the kiwi dipping slightly to a fresh 15-month low of $0.6570.

In the Nigerian Money market, According to chapel hill, on the 26th  January 2022, funding rate in the money market, the Open Buy Back and Overnight  rates inched lower at 0.50% and 1.00% respectively. This coincided with a compression in the level of funding in the market. Specifically, the market closed at N281.53bn long today as the net impact of the NTB auction yesterday pushed N94.49bn out of the market.

In the fixed income market, The bonds market turned out bearish today with a 4bps expansion to 11.54%. This was driven by a sell-off in maturities on the belly of the curve. In the NTB and OMO space, however, yields flattened out today at 5.22% and 5.50% respectively. At the NTB auction which was held on the 26th January 2022, the CBN sold N223.75bn worth of bills across three maturities (91-day: N2.68bn, 182-day: N3.54bn and 364-day: N217.53bn) against the initial offer of N129.33bn. Investors’ subscription was put at N475.63bn, yielding a bid-to-cover ratio of 2.1x. The auction cleared lower across the three maturities (91-day: -1bps, 182-day: -14bps, 364-day: -11bps).

Previous Post

Prof. Isa Pantami Unveils Nigerian Postal Service Debit Card

Next Post

Apple Post Highest Quarterly Revenue in 45 Year History

Related News

IMF- Global Economy growth is expected to be slow in 2023

IMF- Global Economy growth is expected to be slow in 2023

by Rate Captain
February 1, 2023
0

The International Monetary Fund on Monday 31 January 2023 published its latest economic growth projections for 2023 and 2024 in...

Breaking News: All flights cancelled as aviation handling company strikes indefinitely.

Breaking News: All flights cancelled as aviation handling company strikes indefinitely.

by Rate Captain
January 23, 2023
0

The staff of the Nigerian Aviation Handling Company Plc (NAHCO) embarked on an indefinite strike action, which led to the...

Nigeria’s Inflation Climbs to 19.6% in July 2022

Breaking: Nigeria’s Inflation surprisingly plunged to 21.34% in December 2022

by Rate Captain
January 16, 2023
0

The Nigeria inflation rate in December 2022 eased to 21.34% compared to November 2022 headline inflation rate which was 21.47%....

Naira crashes to N742/$ in the parallel market

Naira crashes to N742/$ in the parallel market

by Rate Captain
January 17, 2023
0

On Monday, January 16, 2023, the exchange rate between the naira and the US dollar depreciated to trade at an...

Next Post

Apple Post Highest Quarterly Revenue in 45 Year History

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Airtel Africa’s nine-month turnover hits $3.9billion.

Airtel Africa’s nine-month turnover hits $3.9billion.

February 3, 2023
Charges on cash transactions skyrocketed by POS agents.

Charges on cash transactions skyrocketed by POS agents.

February 3, 2023

Popular Story

  • CBN reduces over-the-counter withdrawals to N100k, N500k per week for individuals, companies

    CBN Directs Banks to Start Paying New Naira Notes Over the Counter.

    0 shares
    Share 0 Tweet 0
  • MTN Nigeria Annual profit hits N361.5 billion.

    0 shares
    Share 0 Tweet 0
  • Shell’s annual profit hits $39.9 billion.

    0 shares
    Share 0 Tweet 0
  • Charges on cash transactions skyrocketed by POS agents.

    0 shares
    Share 0 Tweet 0
  • Naira depreciates to N749/$ in the parallel market.

    0 shares
    Share 0 Tweet 0
RateCaptain

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

?>