SAT 29 JAN, 2022-theGBJournal- Trading in the Treasury bills secondary market was bullish, as average yield across all instruments contracted by 25bps to 4.6%, following the liquidity surfeit in the system.
Across the market segments, the average yield at the OMO segment contracted by 59bps to 5.2%, given improved demand for higher-yielding bills. At the primary market, the CBN sold NGN40.00 billion worth of OMO bills to market participants and maintained the stop rates at 7.00%, 8.50%, and 10.10% on the short, mid, and long-dated instruments, as with prior auctions.
Elsewhere, the average yield at the NTB segment declined by 7bps to 4.3%, as participants sought to cover lost auction bids in the secondary market. On Wednesday at its bi-weekly PMA, the CBN offered NGN129.33 billion for sale and recorded the highest demand level YTD, with a subscription level of NGN475.63 billion (Bid-to-offer ratio: 3.7x; previously 1.5x).
Eventually, the CBN allotted NGN223.75 billion – NGN2.68 billion of the 91D, NGN3.54 billion of the 182D, and NGN217.53 billion of the 364D bills with respective stop rates of 2.48% (previously 2.49%), 3.30% (previously 3.45%), and 5.40% (previously 5.50%).
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