SAT. 25 FEB, 2023-theGBJournal| The Treasury bonds secondary market traded with bullish sentiments as this week’s inflow for FGN bonds coupon payments supported investors’ demand for bonds with attractive yields.
As a result, the average yield contracted by 12bps to 13.1%. Across the benchmark curve, the average yield contracted across the short (-20bps), mid (-14bps), and long (-4bps) segments due to the demand on the APR-2023 (-133bps), NOV-2029 (-18bps), APR-2049 (-9bps) bonds, respectively.
Activities in the Treasury bills secondary market closed on a bullish note this week, as participants looked to sterilize idle cash in anticipation of CRR debits.
As a result, the average yield across the market dipped by 4bps to 4.0%. Across the market segments, the average yield declined by 4bps to 3.9% in the NTB secondary market, but was flat at 3.8% in the OMO segment.
At the primary auction, the CBN offered to participants instruments worth N263.50 billion – N11.68 billion of the 91-day, N10.21 billion of the 182-day, and N241.61 billion of the 364-day bills. Demand at the auction was lower than the previous PMA, as the total subscription settled at N296.75 billion (bid-to-offer settled at 1.1x).
Eventually, the CBN allotted exactly what was offered – at respective stop rates of 3.00% (previously: 0.10%), 3.24% (previously: 0.30%), and 9.90% (previously: 2.24%).
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