SAT 23 APRIL, 2022-theGBJournal | Trading in the Treasury bills secondary market sustained last week’s bearish sentiment following the continued slowdown in demand for bills. Thus, the average yield across all instruments rose by 41bps to 3.8%.
Across the market segments, the average yield expanded both at the OMO and NTB segments by 28bps to 4.0% and 43bps to 3.8%, respectively.
We anticipate a further increase in T-bills yields given the expected tight liquidity position. Also, the CBN is set to hold its bi-weekly NTB PMA with NGN5.86 billion worth of maturing bills on offer.
The overnight (OVN) rate dipped by 5.5ppts w/w to 5.7%, as the liquidity surfeit from the prior week coupled with additional inflows from OMO maturities (NGN23.95 billion) saturated the system and outweighed outflows for this week’s debits.
In the coming week, we expect the OVN rate to trend upward, as expected inflows from FGN bond coupons (NGN160.32 billion) are likely to be offset by funding pressures for next week’s auctions (NTB, OMO and FX).
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