SAT. 03 NOV, 2022-theGBJournal| The Treasury bills secondary market closed this week on a bearish note despite the improved system liquidity. We attribute this week’s bearish sentiments to participants taking profits from their positions in anticipation of the NTB PMA scheduled to hold next week.
As a result, the average yield across all instruments expanded by 26bps to 10.8%. Across the segments, the average yield increased by 32bps to 11.0% at the NTB secondary markets, but contracted by 2bps to 10.1% at the OMO segment.
Next week, we expect the yields on T-bills to maintain the same trajectory, following the expected tight system liquidity. Also, we believe participants will shift focus to next week’s NTB PMA, as the Central Bank of Nigeria (CBN) is set to roll over N54.36 billion worth of maturities.
Activities in the FGN bonds secondary market were bullish as investors cautiously cherry-picked instruments with attractive yields across the curve. As a result, the average yield across instruments contracted by 10bps to 14.3%.
A total of 9,687 units valued at N6.330 million were traded this week in 18 deals compared with a total of 21,215 units valued at N22.462 million transacted last week in 10 deals.
Across the benchmark curve, the average yield contracted at the short (-30bps) and long (-3bps) ends following demand on the MAR-2027 (-55bps) and MAR-2036 (-26bps) bonds, respectively.
Conversely, the average yield expanded at the mid (+4bps) segment as investors sold off the APR-2032 (+8bps) bond.
Twitter-@theGBJournal|Facebook-The Government and Business Journal|email:gbj@govbusinessjournal.ng|govandbusinessj@gmail.com
