SAT APRIL 20 2024-theGBJournal| Sentiments in the Nigerian Treasury bills secondary market ended this week on a bearish note as the average yield across the market expanded significantly by 475bps to 23.4%.
We note substantial sell pressures across the curve as foreign players reacted to the ongoing Middle East conflict while local participants sought to fulfil their funding needs.
Across the market segments, the average yield advanced by 632bps to 25.2% in the NTB secondary market and increased by 25bps to 18.4% in the OMO segment.
Cordros Research tells theG&BJournal that they anticipate that yields in the Treasury bills secondary market will sustain the uptrend from this week’s end, following the likely dearth in system liquidity.
In addition, the CBN is scheduled to hold an NTB PMA on Wednesday (24 April) where it will roll over maturities worth N142.57 billion.
Meanwhile, the overnight (OVN) rate inched higher by 18bps w/w to 30.3%, as settlement obligations for the net NTB issuances (N802.19 billion) and FGN bond PMA (N626.81 billion) and CRR maintenance debits outstripped the inflows from FGN bond coupon payments (N145.98 billion) and CRR maintenance refunds.
Nonetheless, the average system liquidity closed higher at a net long position of N1.03 trillion (vs. a net long position of N255.45 billion in the previous week), reflecting the DMBs’ usage of the apex bank’s SLF facility (Average: N975.58 billion).
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