WED 16 FEB, 2022-theGBJournal- The Treasury bond secondary market was ended on a mixed note, although with a bullish tilt as the average yield pared by 2bps to 11.4%. Across the benchmark curve, the average yield was unchanged at the short end but contracted at the mid (-1bp) and long (-4bps) segments following demand for the JUL-2030 (-4bps) and JUL-2034 (-16bps) bonds, respectively.
At this month’s bond auction, the DMO offered instruments worth NGN150.00 billion to investors through re-openings of the 12.50% FGN JAN 2026 (Bid-to-offer: 4.3x; Stop rate: 10.95%, previously 11.50%) and 13.00% FGN JAN 2042 (Bid-to-offer: 3.1x; Stop rate: 13.00%, unchanged) bonds.
As anticipated, demand was higher (subscription: NGN557.72 billion; bid-to-offer: 3.7x) than January’s auction (Subscription: N325.24 billion; Bid-to-offer: 2.2x). The DMO eventually over-allotted instruments worth N297.39 billion, resulting in a bid-to-cover ratio of 1.9x.
Twitter-@theGBJournal|Facebook-The Government and Business Journal|email: govandbusinessj@gmail.com|
