SAT, 17 SEPT, 2022-theGBJournal| The Treasury bills secondary market closed with bearish sentiments this week as the healthy system liquidity continued to underpin demand for bills. Consequently, the average yield across all instruments dipped by 10bps to 8.3%.
Across the segments, the average yield contacted by 11bps and 21bps to 10.6% and 7.6% at the OMO and NTB secondary markets, respectively. That said, this week, the CBN conducted an OMO auction, where they offered and sold N20 billion worth of bills.
At the auction, stop rates were maintained at 7.00%, 8.50% and 10.10%, respectively. Elsewhere at the NTB PMA, the Central Bank of Nigeria (CBN) offered N159.60 billion – N11.44 billion of the 91-day, N21.85 billion of the 182-day, and N126.31 billion of the 364-day – in bills.
As in previous auctions, the CBN allotted precisely what was offered at respective stop rates of 5.50% (unchanged), 6.00% (previously 5.85%), and 9.75% (previously 10.00%).
Following the lower inflows expected in the system next week, we expect a low demand for T-bills and a slight expansion in yields from current levels.
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