SAT MAY 11 2024-theGBJournal|The Treasury Bills market kicked off the week on a calm note with a bearish bias on the 10-Apr-25 bill with trades consummated at 20.45%.
The average yield across all instruments advanced by 42bps to 21.7%.
Across the market segments, the average yield at the T-bills segment expanded by 19bps to 22.5% and increased by 128bps to 20.0% in the OMO segment.
We witnessed the OMO auction during which the CBN offered N500 billion across the standard maturities.
However, N260.65 billion was sold while total subscription stood at N286.65 billion. Stop rates on the 99-day and 183-day bill dipped by 1bp and 2bps to close at 18.99% and 19.48%, respectively.
The 365-day bill printed at 21.50%, representing a 37.5bps increase from prior levels. At the NTB auction, the DMO offered N179.36 billion across three tenors.
Total subscription amounted to N914.08 billion with only allotted value of N274.66 billion. Stop rates closed at previous auction level of 16.24%, 17.00%, and 20.70% on the 91-, 182-, and 364-day papers.
Sequel to the auctions, we saw the newly issued 6-May-25 bill trade 21.05/20.90 and the 8-May-25 bill 20.15/20.00. Week-on-week analysis indicates an 18bps decline in the average benchmark yield, printing at 22.19%.
Meanwhile, at the money market, in line with our expectations, the overnight (OVN) rate expanded by 154bps w/w to 28.6%, due to debits for this week’s OMO auction (N260.65 billion) and net NTB issuances (N95.31 billion) amid no significant inflows.
As a result, the average system liquidity this week closed lower at a net long position of N401.26 billion (vs. a net long position of N706.61 billion in the prior week).
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