SAT 19 MARCH, 2022-theGBJournal| Proceedings in the Treasury bills secondary market closed the week on a bullish note as the healthy system liquidity fostered demand for short to mid-dated bills.
However, we observed some level of inactivity in the early part of the week, with market participants shifting their focus to the PMAs in both market segments.
Against the preceding, the average yield across all instruments declined by 11bps to 3.4%. Across the market segments, the average yield fell by 30bps and 13bps to 3.6% and 3.3% at the OMO and NTB segments, respectively.
At this week’s OMO auction, the CBN sold N40.00 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 N58.04 billion –N960.66 million of the 91-day, NGN3.61 billion of the 182-day, and N53.46 billion of the 364-day – in bills. The CBN allotted N172.61 billion –N5.91 billion of the 91-day, N6.85 billion of the 182-day and N159.85 billion of the 364-day bills – at respective stop rates of 1.74% (previously 1.75%), 3.00% (previously 3.28%), and 4.00% (previously 4.10%).
With system liquidity expected to tighten in the coming week, we envisage an increase in the average yields on T-bills from current levels.
Twitter-@theGBJournal|Facebook-The Government and Business Journal|email: gbj@govbusinessjournal.ng|govandbusinessj@gmail.com
