SAT MAY 24 2025-theGBJournal| The Treasury bills secondary market traded with bullish sentiments, underpinned by the liquidity influx, and market participants looking to fill unmet bids from the PMAs this week.
The average yield across all instruments declined by 31bps to 23.4%. Across the market segments, the average yield declined by 5bps and 38bps to 20.8% and 26.5% in the NTB and OMO segments, respectively.
At Wednesday’s NTB auction, the Central Bank of Nigeria (CBN) offered bills worth N500.00 billion – N50.00 billion for the 91D, N100.00 billion for the 182D, and N350.00 billion for the 364D bills.
Total subscription levels settled higher at N1.17 trillion (previous auction: N1.09 trillion), indicating a bid-to-offer ratio of 2.3x (previous auction: 2.0x).
The auction closed with the CBN over-allotting to the tune of N615.80 billion – N71.67 billion for the 91D, N41.13 billion for the 182D, and N503.00 billion for the 364D papers – at respective stop rates of 18.00% (unchanged), 18.50% (unchanged) and 19.56% (previous: 19.63%).
The CBN also conducted an OMO auction on Tuesday (20 May), offering instruments worth N500.00 billion – N250.00 billion for the 182D and N250.00 billion for the 210D.
Total subscription settled at N743.25 billion (bid-to-offer: 1.5x), with the CBN allotting N655.25 billion –N117.50 billion for the 182D and N537.75 billion for the 210D at respective stop rates of 23.77% and 23.98%.
”We expect the liquidity surplus to continue to drive the demand for bills, causing yields to decline further in the Treasury bills secondary market, albeit slightly,” analysts at Cordros Research said.
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