Last week, the Nigerian Treasury Bills (“NT-Bills”) secondary market closed bearish as selloffs were recorded, with system liquidity (N56.5bn long as at Wednesday). Consequently, average yield expanded 29bps W-o-W to settle at 7.62% from 7.33% the previous week.

In more detail, average yields on short (8.68%) and medium (7.63%) instruments declined 2bps and 1bp respectively, while the long-term instruments (6.85%) expanded by 71bps W-o-W respectively. Specifically, only the 9-Mar-23 (+71bps W-o-W) witnessed selloffs.

On Wednesday (10-Aug-22), the Apex bank is scheduled to roll over maturing bills worth N150.62bn at the NT-Bills Primary Market Auction (“PMA”) across the 91-, 182-, and 364-Day tenors.  We anticipate an increase in interest rates across all tenors at this auction as investors wait patiently to invest.

Please see below our PMA expectations:

Going into the week, we expect the bearish sentiment to be maintained ahead of the PMA as investors cover unfilled bids towards the end of the week. Also, system liquidity (which stood at N74.9bn as of Friday 5^th July 2022) is expected to be bolstered by NT-Bills maturity worth N264.28bn respectively. Thus, we advise investors to trade cautiously prior to the outcome of the PMA and take advantage of attractive bills across the curve along with offers from corporates.

Please see indicative secondary market NT-Bills rates below:

Rates are valid till 2:00pm today (08-Aug-22)

*Please note that the minimum subscription for NT-Bills is N100, 000.00

FGN Bonds Update: Average Yield expanded by 23bps W-o-W to 11.81%
The domestic bonds secondary market recorded sell-offs last week, as average yields expanded 23bps W-o-W from 11.58% to 11.81%. 

Specifically, average yield across short-, medium- and long-tenored bonds all expanded 17bps, 30bps and 39bps W-o-W respectively, with the 24-Jul-45(+151bps W-o-W) 18-Apr-37 (+89bps W-o-W) and 23-Feb-28(+71bps) instruments recording the most sell-offs across board.

This week, we expect the FGN bonds secondary market to continue in a bearish line as investors continue to stay active in the market. Thus, we advise investors to take advantage of advancing yields along the curve.

Please see below FGN bonds secondary market rates:

Rates are valid till 02:00pm today (08-Aug-22)

*Please note that the minimum subscription for FGN Bonds is N20, 000, 000.00