SAT, OCT 28 2023-theGBJournal|Amid tight interbank liquidity conditions in the money market, the Treasury Bills market adopted a cautious approach at the beginning of the week, with Bearish sentiments dominant.
The average yield across all instruments advanced by 21bps to 7.4%, attributed to participants exiting their positions to focus on the Wednesday auction.
This cautious outlook was further intensified by the NTB auction conducted on Wednesday, where the DMO offered N108 billion across 91-day, 182-day, and 364-day maturities, ultimately allotting N370.33 billion, surpassing the total subscription of N638.14 billion.
The auction’s stop rates settled at 5.90%, 9.00%, and 13.00%, marking a departure from the previous rates of 3.67%, 5.11%, and 9.25%.
Following this auction, investor interest predominantly gravitated towards the recently issued 1-year Treasury bill (24-Oct-24), resulting in most transactions closing in the 12.70% range by the week’s end, while other longer-dated securities were being bid around the 11.50% range.
We expect a cautious approach in anticipation of SRA inflow.
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