Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In Proshare - RSS Feed

Tighter System Liquidity Expected to Bolster Yields


Monday, March 5, 2018 /02:50 PM /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:


Tenor (Days)

Rate (%) p.a.
















OMO Auction

90 to 180 days


OMO Auction

180 t0 300 days


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. 

Related News

  1. An Investment Opportunity in the March 2018 FGN Savings Bond
  2. CBN Calms Market with c.N277bn OMO Sales
  3. PMA Rates Clear lower as DMO Unexpectedly Cuts offer Size in half
  4. VFD Group Achieves 175% Subscription on Debt Note Offer
  5. CBN Moderates System Liquidity with c.N250bn OMO Sales ahead of T-bills PMA
  6. Funding Rates decline on FAAC Expectations
  7. Robust System Liquidity to Drive Buying Interest as PMA holds on Wednesday
  8. Summary of Nigeria''s USD2.5 Billion Eurobonds Priced in February 2018
  9. Bond yields close positive on renewed local interest
  10. A little Breathing Space for the DMO
  11. CBN Resumes OMO to offset Inflows from Maturing Bills
  12. Summary of FGN Bond Auction Results for February 2018
  13. DMO Sells N52bn of New-10 Year Bond at 13.98% Marginal Rate
  14. T-bill Yields Decline as CBN Maintains Hold on OMO
  15. Return to the Eurobond Market in Good Time
  16. Inter-Bank FX Rate hits Ytd High of N306.00 Per $ Amid CBN’s wholesale interventions
  17. Sustained Rallies on Bonds following Successful Eurobond Outing
  18. Ahead of Next Bond Auction Scheduled 21st February, 2018
  19. FSDH Merchant Bank Limited Series 5 and 6 Commercial Paper is Open for Subscription
  20. Nigeria Prices Us$2.5bn Dual Tranche Eurobond: Receives An Order Book Size Of Over Us$11.5bn
Related News