Bonds Auction Sees Robust Participation as T-Bills Yields Steady
The Debt Management Office (DMO) primary market bonds auction held Wednesday sees robust participation by investors in the fixed income securities space as the average yield on the Nigerian Treasury Bills was steady.
DMO offered re-opening 10-year, 20-year and 30-year bonds in a bid to raise N150 billion, split into N50 billion per bond class.
In its bond report, Nigeria’s debt office said investors successfully bid for the 13.9800% FGN FEB 2028, 12.4000% FGN MAR 2036 & 12.9800% FGN MAR 2050 were allotted at the marginal rates of 11.6000%, 11.7500% and 12.8000%, respectively.
However, it noted the original coupon rates of 13.9800% for the 13.9800% FGN FEB 2028, 12.4000% for the 12.4000% FGN MAR 2036 and 12.9800% for the 12.9800% FGN MAR 2050 will be maintained.
Total subscription printed at N360.02 billion but DMO allotted N260.09 billion in total; split as N64.25 billion for 13.98% FGN FEB 2028, N91.03 billion for 12.40% FGN MAR 2036 and n104.8 billion for 12.98% FGN MAR 2050.
In the money market, liquidity positions slow down as there was a fresh run on interbank rates. The overnight lending rate expanded by 0.21 basis points to 17.88% Wednesday as Cordros capital observed the absence of significant inflows into the system.
FMDQ platform shows that open buyback jumped 0.50% to 17.50% as Naira falls to N411.75 at the Investors and Exporters window, from N411.39 today.
The Nigerian Treasury bills secondary market however closed flat as the average yield was unchanged at 4.6%. Elsewhere, the average yield at the open market operations (OMO) segment expanded slightly by a basis point to 7.6%.
Amidst the bond auction held today, trading in the Treasury bond secondary market was mixed, as the average yield stayed flat at 11.5%.
Across the benchmark curve, average yield pared at the mid (-1bp) segment following demand for the JUL-2030 (-2bps) bond but expanded at the long (+1bp) end due to sell-off of the APR-2037 (+12bps) bond; the short end closed flat.
Read Also: T-Bill Rate Steady as Naira Gains at Investors Window
Bonds Auction Sees Robust Participation as T-Bills Yields Steady
