December 11, 2024/Coronation Research

Summary

• Last week, market liquidity closed positive, at N632.38bn. Call, overnight, and repo rates closed within a range of 7.3% – 28.2%, as rates narrowed.
• In the Treasury bill market, average yields increased by 11bps to 25.27% pa, as the market sold off. At the primary market T-bill auction held last week, the CBN offered N583.26bn, but allotted N756.70bn worth of T-bills to market participants. The stop rates for 91-day and 182-day tenors remained steady at 18.00% and 18.50% respectively. Meanwhile, the stop rate for the 364-day tenor decreased by 57bps to 22.93% (previously 23.50%), implying a yield of 29.75%.
• The average yield for OMO bills increased by 13bps to 27.32% pa. At the OMO auctions last week the CBN offered the sum of N500.00bn, but allotted N772.93bn-worth of 361-day OMO bills. The stop rate for the 361-day OMO bill stood at 23.98%, implying a yield of 31.54%. There was no sale of the 88-day and 186-day bills.
• In the FGN Bond market, the average yield edged upward by 2bps across the curve, reaching 19.49% pa. Trading activity in the long end of the curve closed flat, with the average yield at 17.68%. Average yields at the short and mid-points of the curve added 3bps to close at 20.35% and 19.73%, respectively.
• Trading activity in the Eurobond market witnessed bullish sentiment, driven by strong buying interest resulting in a 48bps decline in average yields, which moderated to 9.18% from 9.66% in the prior week.

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