Yields across the benchmark curve compressed marginally by 3 basis points, with some demand witnessed on the 2036 maturity as the Federal Government of Nigeria Bond market traded on a quiet note ton Tuesday with sparse volumes executed during the trading session.
At the Primary Auction tomorrow, the DMO will offer a total of N100bn, with the re-opening of the 5-year, and new issues for the 10- and 30-year tenors.
The much-anticipated 30-year issuance will be the highlight at the auction, as investors look to price the debut longest- duration Naira bond maturity.
The T-bills market traded on a mixed note today, with initial demand seen at the mid- to long-end of the NTBills curve. However, upon the announcement of an OMO auction by the CBN mid trading, we saw a reversal in yields as traders sold off long-end maturities in anticipation of the renewed supply of OMO T-Bills.
At the OMO auction, the CBN sold a total of N166.58bn across three maturities.
The stop rates for the 93-, 184- and 359-day tenors were 11.80 per cent, 12.90 per cent, and 13.029 per cent respectively, marginally lower than the previous auction.
“We expect yields to trend higher for the rest of the week as the system liquidity remains pressured by outflows from FX and Bond Auction funding later this week,” explained analysts from Zedcrest Capital.