“Whilst we expect the maturing T-bills to be rolled over, the CBN may yet stall issuance of OMO bills. Thus, barring any OMO mop-up, we expect rates to further moderate in the secondary market for T-bills, whilst money market rates remain in single digit,” one dealer noted in a note to investors.
Meanwhile, the Federal Government of Nigeria (FGN), through the Debt Management Office (DMO) is scheduled to hold the last bond auction for the year on December 13, 2017.
The amount on offer according to dealers is expected to be within the range of N90 billion to N110 billion. Two instruments which are both re-openings, the FGN JUL-2021 (5-year) and the FGN MAR-2027 (10-year), will be on offer as shown follows: 14.50 per cent FGN JULY 2021 (5-Yr Re-opening) N45 billion to N55 billion; 16.2884 per cent FGN MAR-2027 (10-Yr Re-opening) N45billion to N55 billion.
The Treasury bonds market has remained bullish since the last auction held on the 22nd of November, as the average bond yield declined by 0.25 per cent to close at 14.70 per cent on December 7, 2017.
However, investors’ appetite towards the FGN JUN-2019 and FGN OCT-2019 instruments remained bearish, as they were the only instruments to record yield advancements of 0.20 per cent and 0.04 per cent respectively.
and then