By Cordros Research
In the just concluded week, the treasury bills market closed on a bullish note, with average yield contracting by 3 bps to 18.55 percent, from 18.58 percent.
The upbeat momentum was driven by relative improvement in system liquidity, which spurred renewed interest at the short (-17 bps) and mid (-5 bps) ends of the curve, as investors demanded for the 7-SEPT-2017(-169 bps), 28-SEPT-2017(-111 bps), 7-DEC-2017(-27 bps), and 18-JAN-2018(-20 bps) bills respectively.
Conversely, yield at the long (+6 bps) segment expanded as investors sold off the 5-JULY-2018 (+58 bps) and 12-JULY-2018 (+57 bps) bills respectively.
Also during the week, the DMO, on behalf of the FGN, allotted bonds valued at N56.05 billion (vs. 135 billion offered) – comprising N9.18 billion (vs. N35 billion offered), N17.51 billion (vs. N50 billion offered), and N29.36 billion (vs. 50 billion offered) of the JUL-2021, MAR-2027, and APR-2037 bonds, respectively – all in reopening.
The 5-year, 10-year, and 20-year bonds, although undersubscribed, were issued at stop rates of 16.80 percent (previously 16.24 percent), 16.80 percent (previously 16.25 percent) and 16.90 percent (previously 16.25 percent) respectively, the highest since January.
Proceedings were bearish in the secondary market, as average yield expanded by 17 bps to 16.66 percent against last week’s 16.49 percent. Investors sold off at the short (+22 bps), mid (+27 bps), and long (+16 bps) ends of the curve, wherein yields expanded to 16.89 percent, 16.66%, and 16.63 percent respectively – with the 29-JUNE-2019 (+9 bps), 13-FEB-2020 (+26 bps), and 18-APRIL-2037 (+32 bps) bonds in the spotlight.
Adedapo Adesanya 
Modupe Gbadeyanka