SAT. 10 DEC, 2022-theGBJournal| Trading in the Treasury bills secondary market sustained last week’s bullish sentiment, as the average yield across all instruments contracted by 202bps to 8.8%.
This week’s bullish sentiments were driven by participants looking to the secondary market to cover lost bids at the NTB PMA.
Across the market segments, the average yield dipped at the NTB and OMO segments by 252bps to 8.5% and 2bps to 10.1%, respectively.
At this week’s NTB PMA, the CBN offered N54.36 billion – N1.03 billion of the 91-day, N1.94 billion of the 182-day, and N51.39 billion of the 364-day – in bills.
At the auction, demand was higher at a total subscription level of N728.57 billion, with more demand skewed toward the longer-dated bills (N722.23 billion translating to 99.1% of the total subscription).
Eventually, the CBN allotted N104.36 billion – N1.03 billion of the 91-day, NGN1.94 billion of the 182-day, and N101.39 billion of the 364-day – at respective stop rates of 6.49% (previously: 6.50%), 8.00% (previously: 8.05%), and 13.05% (previously: 14.84%).
On the other hand, bullish sentiments persisted in the treasury bonds secondary market as local investors continued to scout for attractive bonds across the short and long spectrum.
Consequently, the average yield dipped by 19bps w/w to 14.1%.
Across the benchmark curve, the average yield contracted at the short (-64bps) and long (-4bps) ends, following bargain hunting on the APR-2023 (-249bps) and MAR-2035 (-32bps) bonds, respectively. Meanwhile, the average yield expanded at the mid (+6bps) segment as investors sold off the NOV-2029 (+8bps) bond.
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