Weekly Economic And Financial Commentary – October 05, 2020
At last week’s NTB auction, the CBN (on behalf of DMO) offered N113.97 billion and allotted N133.97 billion (to clear the entire maturing bills) worth of bills. Subscription at the auction came in at N348.26 billion, with the average stop rate declining 9bps to 1.79% relative to the last auction. At the secondary market, average fixed income yields fell by 3bps to 4.02% following decline at the long end of the curve. Average bond yields dropped by 26bps WoW to 6.19% emanating from the Jan-2022 (-132bps) and July-2030 (-114bps), while average NTB yields expanded 20bps WoW to 1.85%. The apex bank released the fourth quarter NTB auction calendar last week which showed its plan to issue bills worth N918 billion compared to maturing bills worth N1.06 trillion. Elsewhere, average FGN Eurobond yields expanded by 4bps to 7.50%, following expansion in the Jan-2021 (24bps), Nov-2027 (6bps), Feb-2030 (7bps) and Nov-2032 (4bps).
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