SAT 22 JAN, 2022-theGBJournal- The Treasury bills secondary market traded on a bearish note, mirroring the higher stop rates at the recent NTB auction and as market participants exited positions to provide some respite to their funding obligations.
Accordingly, the average yield across all instruments expanded by 6bps to 4.8%. Across the market segments, most of the yield increase was witnessed at the OMO segment (+19bps to 5.8%), while the NTB segment was increased slightly by 2bps to 4.4%. The CBN held an OMO auction this week, allotting NGN20.00 billion worth of instruments. The auction was oversubscribed across the three tenors, with stop rates remaining unchanged from the previous auction.
In the coming week, we expect the outcome of the NTB auction to shape the direction of yields in the T-bills market. The CBN is set to roll over NGN129.33 billion worth of maturities to market participants at the auction.
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