Culled—Proshare
March 5, 2018/Afrinvest Research
Last week, the Treasury Bills (“T-bills”) secondary market sustained its bullish performance for the second consecutive week on the back of improved system liquidity and buying interests across tenors. Consequently, rates declined 4bps W-o-W to close at 14.0% on Friday.
At the Primary Market Auction last week, the 91, 182 and 364-day bills were 1.0x, 1.0x and 5.5x oversubscribed respectively following an allotment of N130.0bn against a total subscription of N361.0bn. Due to improved system liquidity and higher subscription, stop rates across all tenors declined. The 91, 182 and 364-day rates fell to 11.85% (vs. 11.95%), 13.50% (vs. 13.65%) and 13.50% (vs 13.70%) respectively.
Please see available rates and tenor for today below:
| Maturity | Tenor (Days) | Rate (%) p.a. |
| 12-Apr-18 | 38 | 12.20 |
| 14-Jun-18 | 101 | 12.50 |
| 05-Jul-18 | 122 | 12.80 |
| 30-Aug-18 | 178 | 13.10 |
| 04-Oct-18 | 213 | 13.20 |
| OMO Auction | 90 to 180 days | 12.00 |
| OMO Auction | 180 t0 300 days | 13.50 |
Please note that rates are valid till 1:30pm today (05-Mar-18)
This week, an OMO maturity of N130.0bn is expected to hit the system. However, we expect yields in the T-bills secondary market to trend higher on the back of tighter system liquidity as the Apex Bank sustains its frequent OMO auction.