SAT, JULY 15 2023-theGBJournal |Bullish sentiments persisted in the NTB secondary market, as the average yield across all instruments contracted by 3bps to 6.3%.
Notably, this week’s bullish performance is attributable to the combined impact of the healthy system liquidity and market participants moving to the secondary market to compensate for lost bids at Wednesday’s NTB PMA.
At the auction, the CBN offered N141.77 billion – N2.78 billion of the 91-day, N1.49 billion of the 182-day, and N137.50 billion of the 364-day – in bills.
Total subscription at the auction settled at N691.86 billion (bid-to-offer settled at 4.9x) with more interest on the longer-dated bills (N654.62 billion translating to 94.6% of the total subscription).
The auction closed with the CBN allotting precisely what was offered at respective stop rates of 2.86% (previously 2.87%), 3.50% (previously 4.37%), and 5.94% (previously 6.23%).
In the same vein, trading activities in the Treasury bonds secondary market sustained its bullish momentum as investors continued to cherry-pick attractive bonds across the yield curve.
As a result, the average yield contracted by 21bps to 12.7%. Across the benchmark curve, the average yield declined at the short (-25bps), mid (-8bps), and long (-28bps) segments, following market participants demanding the MAR-2025 (-59bps), APR-2032 (-15bps), and MAR-2036 (-75bps) bonds, respectively.
A total of 20,386 units valued at N21.934 million were traded during the week in 14 deals compared with a total of 45,738 units valued at N46.148 million transacted last week in 30 deals.
Meanwhile, the overnight (OVN) rate expanded by 33bps w/w to 1.6%, as the average system liquidity this week settled lower at a net long position of N708.40 billion (vs a net long position of N782.85 billion in the previous week).
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