SAT, 28 MAY, 2022-theGBJournal| The Treasury bills secondary market closed the week on a bearish note on the back of the depressed system liquidity, and the adjustment in secondary market rates to reflect the higher stop rates from Wednesday’s NTB PMA.
Thus, the average yield across all instruments expanded by 19bps to 4.0%. Across the segments, the average yield expanded by 40bps and 14bps to 4.4% and 3.8% at the OMO and NTB segments, respectively. At this week’s NTB auction, the Central Bank of Nigeria (CBN) offered NGN153.03 billion – NGN5.36 billion of the 91-day, NGN3.78 billion of the 182-day, and NGN143.88 billion of the 364-day – in bills.
Ultimately, the CBN allotted NGN173.48 billion – NGN3.56 billion of the 91-day, NGN1.52 billion of the 182-day and NGN168.67 billion of the 364-day bills – at respective stop rates of 2.50% (previously 1.74%), 3.89% (previously 3.00%), and 6.49% (previously 4.70%).
Elsewhere, at the OMO auction, the CBN offered and allotted NGN20.00 billion worth of bills to market participants and maintained stop rates across the three tenors, as with previous auctions.
Next week, we expect bullish sentiments in the T-bills market, following the expectation of healthy system liquidity.
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