SAT JAN 04 2025-theGBJournal| Both the Treasury bills secondary market and the FGN bond secondary market were subdued as investors await scheduled NTB PMA and release of the FGN bond calendar respectively.
Trading volumes remained low at the Treasury bills secondary market as most market participants have yet to resume activities for the year fully.
The average yield held steady at 26.2%. Across the market segments, the average yield pared by 7bps to 25.5% in the NTB segment but increased by 3bps to 27.2% in the OMO segment.
The Central Bank of Nigeria (CBN) conducted an OMO auction on Monday, offering instruments worth N500.00 billion – N250.00 billion for the 358D and N250.00 billion for the 365D – to investors.
Total subscription settled at N931.32 billion (bid-to-offer: 1.9x), with the CBN allotting exactly what was offered – N100.00 billion for the 358D and N400.00 billion for the 365D instruments.
The Debt Management Office (DMO) is scheduled to hold an NTB PMA next Wednesday (8 January), with N74.41 billion worth of maturing bills on offer.
At the bonds market, only retail-sized trades from cautious investors were observed.
Consequently, the average yield inched higher by 3bps to 19.8%. Across the benchmark curve, the average yield expanded at the short (+14bps) and mid (+1bp) segments following selloffs of the JAN-2026 (+63bps) and JUL-2034 (+1bp) bonds, respectively.
The average yield closed flat at the long end.
Looking ahead, we still expect quiet proceedings as we believe investors are likely to align their strategies with evolving macroeconomic conditions and the release of the FGN bond calendar.
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