…The Central Bank of Nigeria (CBN) conducted an OMO auction midweek which was met with paltry interest following a subscription of NGN36.00 billion (range of bid: 23.22% – 24.17%)
SAT JULY 20 2024-theGBJournal|Trading in the Treasury bills secondary market maintained the bearish trend from the prior weeks, as foreign portfolio investors (FPIs) exited their positions.
Thus, the average yield across all instruments rose by 100bps to 24.7% by Friday. Across the market segments, the average yield advanced by 156bps to 24.9% in the T-bills segment and increased by 6bps to 24.3% in the OMO segment.
The Central Bank of Nigeria (CBN) conducted an OMO auction midweek which was met with paltry interest following a subscription of NGN36.00 billion (range of bid: 23.22% – 24.17%), compared to the NGN150.00 billion on offer. As a result, the apex bank ended the auction with no sales.
We expect the outcome of the MPC meeting scheduled for 22 and 23 July to influence sentiments in the T-bills secondary market.
Research analysts at Cordros say they do not rule out a likely return of demand in the secondary market supported by the significant amount of liquidity influx expected into the financial system next week.
In addition, the DMO is scheduled to conduct an NTB PMA next Wednesday (24 July), where it is expected to roll over NGN277.96 billion worth of maturities.
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