SAT. 28 JANUARY, 2023-theGBJournal| The Treasury bills secondary market remained bullish this week, as the average yield across all instruments dipped by 160bps to 1.8%.
The week’s performance was driven by higher demand for bills across the market, supported by the ample liquidity in the financial system and market participants looking to the NTB secondary market to compensate for unmet bids at Wednesday’s NTB PMA.
Consequently, across the market segments, the average yield contracted by 200bps to 1.5% in the NTB secondary market and pared by 1bp to 2.9% in the OMO segment.
At this week’s NTB PMA, the Central Bank of Nigeria (CBN) offered instruments worth N220.53 billion – N1.74 billion of the 91-day, N1.26 billion of the 182-day, and N217.53 billion of the 364-day bills.
At the auction, demand was strong as the bid-to-offer settled at 4.4x, which corresponds to a total subscription level of N959.39 billion and offer of N220.53 billion.
Also, demand was skewed toward the longer-dated bills (N860.35 billion translating to 89.7% of the total subscription).
Eventually, the CBN allotted precisely what was offered – at respective stop rates of 0.29% (previously: 2.00%), 1.80% (previously: 4.33%), and 4.78% (previously: 7.30%).
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