SAT 02 APRIL, 2022-theGBJournal Proceedings in the Treasury bills secondary market closed the week on a bearish note following a dearth in demand and as the secondary market rates adjusted to the increased NTB PMA rates.
Thus, the average yield across all instruments inched higher by 3bps to 3.3%. Across the market segments, the average yield expanded by 15bps and 2bps to 3.8% and 3.2% at the OMO and NTB segments, respectively.
At this week’s OMO auction, the CBN sold NGN50.00 billion worth of bills to market participants and maintained stop rates across the three tenors, as with previous auctions.
At the NTB auction, the CBN offered NGN143.29 billion – NGN2.49 billion of the 91-day, NGN2.09 billion of the 182-day, and NGN138.71 billion of the 364-day – in bills. Ultimately, the CBN allotted NGN174.19 billion – NGN13.88 billion of the 91-day, NGN20.35 billion of the 182-day and NGN139.96 billion of the 364-day bills – at respective stop rates of 1.75% (previously 1.74%), 3.00% (unchanged), and 4.45% (previously 4.00%).
With system liquidity expected to tighten in the coming week, we anticipate a further increase in the average yields on T-bills.
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