SAT, 12 NOV, 2022-theGBJournal| The buoyant system liquidity triggered bullish sentiments in the NTB secondary market this week, as market participants took positions at the short and mid spectrums of the curve to cover for lost bids at the NTB PMA.
Consequently, the average yield across all instruments dipped by 40bps to 10.5%. Across the market segments, the average yield contracted by 50bps to 10.6% in the NTB segment and declined marginally by 2bps to 10.2% in the OMO secondary market.
At this week’s NTB PMA, the CBN offered N193.03 billion – N21.15 billion of the 91-day, N32.83 billion of the 182-day, and N139.06 billion of the 364-day – in bills. At the auction, demand was higher at a total subscription level of N520.92 billion with more demand skewed towards the longer-dated bills (N499.42 billion translating to 95.9% of the total subscription).
Eventually, the CBN allotted N310.12 billion – N4.52 billion of the 91-day, N5.44 billion of the 182-day, and N300.16 billion of the 364-day bills – at respective stop rates of 6.50% (unchanged), 8.05% (unchanged), and 13.99% (previously: 14.50%).
With system liquidity expected to be tight in the coming week, we anticipate an increase in the average yield on T-bills from current levels.
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