The Central Bank of Nigeria is scheduled to hold a Primary Market Auction on Thursday, offering N109.7bn worth of Treasury bills.<\/p>\n
The PMA is scheduled to hold on Thursday due to the public holiday on Wednesday.<\/p>\n
The N109.7bn maturing T-bills will be rolled over across the 91-day (N28.0bn), 182-day (N43.5bn) and 364-day (N38.2bn) tenors.<\/p>\n
The CBN resumed its customary Open Market Operation auctions on Tuesday last week, offering a total of N200bn across the 93-day, 184-day and 359- day tenors.<\/p>\n
While the short- and medium-term instruments were undersubscribed with a bid to cover ratio of 0.2x and 0.03x, respectively, the 359-day instrument had an oversubscription of 2.8x, signalling continued investors preference for long-term instruments.<\/p>\n
Last week, the Treasury bills secondary market sustained its bullish run for the fourth consecutive week as improved system liquidity fuelled buying interests by investors.<\/p>\n
The upbeat in system liquidity stemmed from matured OMO bills on Thursday (N46.3bn). Consequently, system liquidity closed at about N464.7bn on Friday due to the absence of OMO auction.<\/p>\n
As a result, average yields across tenors dipped by 10 basis points week-on-week to settle at 13.1 per cent on Friday.<\/p>\n
The short-term maturities declined the most by 36bps while the medium- and long-term instruments respectively shed 24bps and nine basis points week-on-week. However, major buying interests were recorded on the 30-May-19 (-94bps), 1-Aug-19 (-69ps) and 19-Dec-19 (-45bps) maturities.<\/p>\n
Analysts at Afrinvest Securities Limited said they expected more frequent OMO mop-ups by the CBN to persist this week as T-bills (N109.7bn) and OMO maturities (N73.3bn) worth N172.5bn as well as Federation Accounts Allocation Committee inflows of about N350bn were scheduled to hit the system, thereby bolstering system liquidity.<\/p>\n
\u201cInvestors are, therefore, advised to take advantage of bills with attractive yields, especially at the longer end of the curve,\u201d they added.<\/p>\n
In the bonds market, performance was relatively bearish as investors sold off their positions ahead of the primary market bond auction, which held on Wednesday last week.<\/p>\n
Consequently, average yields advanced by 18bps week-on-week to settle at 14.2 per cent.<\/p>\n
Major sell-offs were recorded on the medium end of the yield curve, particularly the 27-Jan-22 (-81bps), 13-Mar-22 (-62bps) and 13-Feb-22 (-56bps) maturities.<\/p>\n
At the primary market auction last Wednesday, the Debt Management Office offered a total of N100bn across the 12.75 APR 2023 (re-opening) and new benchmark 10-year and 30-year bonds.<\/p>\n
The auction results showed a sustained trend in investors preference for longer-term bonds as the newly-issued 10-year and 30-year bonds were oversubscribed by 1.3x and 4.0x, respectively.<\/p>\n
Conversely, the 2023 instrument (re-opened) was undersubscribed with a bid-to-cover ratio of 0.4x.<\/p>\n
In addition, the DMO reviewed the stop rates for three tenors higher in tandem with secondary market rates, with the new benchmark 10- and 30-year bonds offered at 14.55 per cent and14.80 per cent, respectively.<\/p>\n
Analysts at Afrinvest said going into the week, the bond market was expected to open on a positive note as investors continued to take advantage of attractive yields on the longer end of the curve.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Central Bank of Nigeria is scheduled to hold a Primary Market Auction on Thursday, offering N109.7bn worth of Treasury bills. The PMA is scheduled to hold on Thursday due to the public holiday on Wednesday. The N109.7bn maturing T-bills will be rolled over across the 91-day (N28.0bn), 182-day (N43.5bn) and 364-day (N38.2bn) tenors. The […]<\/p>\n","protected":false},"author":62,"featured_media":8947,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,15,29],"tags":[503,366,370,344],"class_list":["post-9342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-head-lines","tag-cbn","tag-investment","tag-market","tag-money"],"yoast_head":"\n