By Chioma Obinagwam
Nigeria’s central monetary authority, the Central Bank of Nigeria (CBN) has concluded plans to extend Nigerian Treasury Bills (NT-Bills).
Confiance News gathered from FSDH Capital Limited market wrap on Monday.
The company reputed to provide Investment Banking, Debt Solutions and Securities Trading services disclosed that the primary market auction will occur on NT-Bills with maturities worth 5.86 billion across 91-day (₦0.96 billion), 182-day (₦1.10 billion, and 364-day (₦3.80 billion) tenors.
“Tomorrow, the CBN is scheduled to conduct a Primary Market Auction to roll over NT-bills maturities worth ₦5.86 billion across 91-day (₦0.96 billion), 182-day (₦1.10 billion, and 364-day (₦3.80 billion) tenors,” the report revealed.
Meanwhile, it stated that the NT-Bills secondary market closed on a flat note with average yield across the curve remaining unchanged at 4.48 percent. Average yields across short-term, medium-term, and long-term maturities closed flat at 3.51 percent, 3.74 percent, and 5.18 percent, respectively.
In the OMO bills market, the average yield across the curve closed flat at 5.48 percent. Average yields across short-term, medium-term, and long-term maturities remained unchanged at 5.47 percent, 5.51 percent, and 5.54 percent, respectively.
Money market
As of December 14, the Overnight (O/N) rate increased by 0.25 percent to close at 14.25 percent as against the last close of 14.00 percent, and the Open Repo (OPR) rate also increased by 0.25 percent to close at 13.75 percent compared to 13.50 percent on the previous day. Despite OMO repayment of ₦40.00 billion, the money market rates are likely to remain elevated in the near term.
Forex
At the Investor and Exporter Forex (I&E FX) market, Naira depreciated by 0.18 percent as the dollar was quoted at ₦414.80 as against the last close of ₦414.06. Most participants maintained bids between ₦405.00 and ₦444.00 per dollar.
Bonds
FGN bonds secondary market closed on a mildly positive note today, as the average bond yield across the curve cleared lower by 7 bps to close at 8.07 percent from 8.14 percent on the previous day. Average yields across short tenor and long tenor of the curve decreased by 10 bps and 1 basis point, respectively. However, the average yield across the medium tenor of the curve remained unchanged. The 27-APR-2023 maturity bond was the best performer with a decrease in the yield of 52 bps, while the FGNSB 13-MAR-2022 bond was the worst performer with an increase in yield of 28 bps.
FSDH Capital Limited further disclosed that the Debt Management Office (DMO) would offer FGN bonds worth N100 billion.
“Tomorrow, the DMO is scheduled to offer FGN bond worth ₦100 billion through re-opening of 10-year (₦50 billion) and 20-year (₦50 billion) tenors, and the settlement will take place on December 17,” it stated.
