SAT. 14 JANUARY, 2023-theGBJournal| The Nigerian Treasury bills secondary market remained bullish as the average yield across all instruments contracted by 7bps to 3.3%. We attribute this week’s performance to higher demand following the healthy system liquidity and market participants moving to the secondary market to compensate for lost bids at Wednesday’s NTB PMA.
Across the market segments, the average yield contracted by 9bps to 3.3% at the NTB secondary market, but was flat at 3.4% at the OMO segment.
At this week’s NTB auction, the Central Bank of Nigeria (CBN) offered bills worth NGN56.93 billion – NGN1.55 billion of the 91-day, N1.49 billion of the 182-day, and N53.90 billion of the 364-day – to market participants.
Demand was higher, especially for the 364-day T-bills, as the total subscription settled at N389.04 billion.
Eventually, the CBN allotted exactly what was offered at respective stop rates of 2.00% (previously 2.75%), 4.33% (previously 7.15%), and 7.30% (previously 8.49%).
For next week, we believe yields in the NTB secondary market will move northward, given the anticipated lower liquidity in the system.
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