Last week, the Nigerian Treasury Bills (“NT-Bills”) secondary market closed the week on a bullish note, as average yield declined by 50bps to close at 10.62% from 11.12% recorded in the previous week.

Specifically, the medium-term and long -term instruments witnessed the most buying interest as its average yields declined 44bps and 99bps respectively with the (11-Mar-23) and (14-Sep-23) contracting 260bps and 282bps W-o-W.

At the Primary Market Auction (PMA), last week Wednesday, 09-Nov-22, the Apex bank offered a total of ₦193.3bn across the 91-, 182- and 364-Day instruments. The offer recorded a total bid-to-cover ratio of 1.5x (₦193.3bn offer vs. ₦520.9bn subscription). As a result, the stop rates on the 91-days and 182-days remained unchanged while 364-days declined 51bps to close at 13.99% from 14.50% the previous auction.

Please see a detailed summary of the NT-Bills PMA below:

This week, we anticipate sustained bullish sentiment due to improved system liquidity (which stood at ₦316.07bn positive as of Friday 11-Nov-2022.  Thus, we maintain our advice to investors to take advantage of relatively attractive bills across the curve along with offers from corporates.
 
Please see indicative secondary market NT-Bills rates below:

Rates are valid till 01:45pm today (14-Nov-22)
*Please note that the minimum subscription for NT-Bills is ₦100, 000.00
 
FGN Bond Update: Average Yield declined by 6bps W-o-W to 14.45%
 
 The domestic bond secondary market witnessed a mixed sentiment as it closed the previous week on a positive note. As a result, average FGN Bond yield dipped by 6bps W-o-W to 14.45% from 14.51% in the past week.
In more details, average yields on the short and medium tenured instruments (13.38% and 14.65%) witnessed the most buying interest (16bps W-o-W) and (14bps W-o-W) as yields on JAN-2026, and MAY-2029 dipped 35bps, and 18bps W-o-W respectively. On the flip side the long tenor witnessed the most sell offs as its average yield advanced 8bps to close at 14.94% W-o-W.
Today, the Debt Management office (“DMO”) is scheduled to offer N225.0bn across the APR 2029, APR 2032 and APR 2037 maturities in the primary market FGN Bond offer.
Please see below details of the offer: 

Going into the week, we expect a bearish momentum as investors continue to demand for higher yields across all maturities. Thus, we maintain our advice that investors take advantage of maturities with relatively attractive yields across the curve.
 
Please see below FGN bond secondary market rates 

Rates are valid till 01:45pm today (14-Nov-22
*Please note that the minimum subscription for FGN Bonds is ₦20,000,000