SAT. 26 NOV, 2022-theGBJournal| The Treasury bills secondary market had a quiet run this week, as the market was relatively quiet amid a switch in focus to Wednesday’s NTB PMA.
As a result, the average yield across all instruments grew marginally by 4bps to 10.6%. Across the market segments, the average yield expanded at the NTB segments by 5bps to 10.7%, while it contracted by 2bps to 10.2% at the OMO secondary market.
At this week’s NTB PMA, the CBN offered N213.43 billion – N32.28 billion of the 91-day, N41.25 billion of the 182-day, and N139.90 billion of the 364-day – in bills.
At the auction, demand was lower at a total subscription level of N360.25 billion (vs N520.92 billion in the previous auction).
We note that demand was more on the longer-dated bills (N345.23 billion translating to 95.8% of the total subscription).
Eventually, the CBN allotted precisely what was offered at respective stop rates of 6.50% (unchanged), 8.05% (unchanged), and 14.84% (previously: 13.99%).
With system liquidity expected to be tight in the coming week, we anticipate an increase in T-bills yields from current levels.
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