Average T-Bills Rates Settle at 11.5% as T-Bills PMA and FGN Bond Auction Hold this Week – Indicative Rates for 13-Aug-18 x
In its customary quest to mop up excess system liquidity (N641.0bn as at Thursday), the CBN conducted an OMO auction offering N450.0bn for the 91 and 203-day tenors respectively. While the shorter end was 72.6% under-subscribed (N100.0bn offered vs. N27.4bn subscription), the longer tenor was 99.9% subscribed (N350.0bn offered vs. N349.6bn subscription) as a result of a better yield on the 203-day maturity compared to yields on the long-term T-Bills secondary market instruments.
Please see indicative rates for today below:
Maturity | Tenor (Days) | Rate (%) p.a. | Yield (%) p.a. |
20-Sep-18 | 38 | 8.1 | 8.17 |
01-Nov-18 | 80 | 9.4 | 9.6 |
13-Dec-18 | 122 | 10.9 | 11.31 |
31-Jan-19 | 171 | 11.1 | 11.71 |
21-Feb-19 | 192 | 11.2 | 11.9 |
OMO Auction | 203 | 11.3 | 12.09 |
A Primary Market Auction (‘’PMA”) is slated to hold on Wednesday with the CBN offering N33.4bn across the 91, 182 and 362-day maturities. In addition to the maturing T-Bills of N33.4bn. Additionally, an injection of N440.0bn from OMO maturities is expected to boost system liquidity. This week we expect to see more activities in the T-Bills market particularly at the longer-end of the curve at the PMA and also anticipate an excess system liquidity mop-up by the Apex bank towards the end of the week.
Please see our expectations for the PMA below:
Tenor | Amount on Offer | Previous Stop Rate | Expected Stop Rate |
91 days | 10.0000% | 10.0000%-10.1000% | |
182 days | 10.4000% | 10.3000%-10.3500% | |
364 days | 11.3000% | 11.2000%-11.4000% |
FGN Bonds Market Update: Off-Shore Investors Sell-off amidst Political Tensions, Bond Auction Slated for Wednesday
Due to the Muslim holidays, the DMO moved the bonds auction previously slated for August 22nd forward to August 15th with a total of N90.0bn on offer- N25.0bn apiece of the APR-2023 and MAR-2025 maturities and N40.0bn of the FEB-2028 maturity.
Please see indicative bond rates for today below:
Bond | Tenor (Years) | Yield (%) | Coupon (%) | Implied Price (N) |
Feb-20 | 2 | 13.15 | 15.54 | 103.16 |
Jul-21 | 3 | 13.70 | 14.50 | 101.84 |
Jan-22 | 4 | 13.80 | 16.39 | 106.91 |
Mar-24 | 6 | 13.95 | 14.20 | 100.91 |
Jan-26 | 8 | 14.45 | 12.50 | 91.26 |
Mar-27 | 9 | 14.40 | 16.29 | 109.11 |
Jul-34 | 16 | 14.50 | 12.15 | 85.51 |
Mar-36 | 18 | 14.35 | 12.40 | 87.56 |
Apr-37 | 19 | 14.40 | 16.25 | 111.83 |
This week, we expect to see bargain hunting by investors particularly on instruments with lower prices and higher yields and also anticipate a bullish performance at the FGN bonds auction slated for Wednesday (where the DMO will re-issue 12.75% FGN APR 2023, 13.53% FGN MAR 2025 and 13.98% FGN FEB 2028)on the back of a boost in system liquidity.
Rates are valid till 1:45pm today (06-Aug-18)
*Please note that the minimum subscription for bonds is N20,000,000.00
To invest in FGN Bonds or T-Bills, send an email to [email protected] or contact Afrinvest Securities on: