N334.5 Billion Worth Of Inflows To Hit Nigeria's Market Wednesday

Nigeria's financial market is expected to receive inflows worth N334.5 billion on Wednesday, thereby raising liquidity to N406.8 billion from Friday's N72.3 billion.

A total of N157.2 billion worth of maturing Nigerian Treasury Bills (NT-Bills) will be rolled over by the Central Bank of Nigeria in the Primary Market Auction (PMA) on Wednesday, while N177.3 billion would come from maturing Open Market Operation (OMO).

Last week, the NT-Bills secondary market had a bullish run amidst pressured liquidity levels (which fell to N72.3bn on Friday) due to continued demand on the long-dated maturities (as average yields contracted 56 bps week-on-week). As a result, the average yield dipped by 8bps WoW to close at 4.69 percent from 4.77 percent in the previous week.

The NT-Bills secondary market closed flat on Monday, with the average yield across the curve remaining unchanged at 4.68 percent. Average yields across short-term, medium-term, and long-term maturities closed at 3.47 percent, 4.34 percent, and 5.68 percent respectively.

The average yield in the OMO bills market also remained unchanged at 5.95 percent. Average yields across short-term, medium-term, and long-term maturities closed at 5.36 percent, 6.18 percent, and 6.65 percent respectively.

At the PMA, the Debt Management Office's N150 billion offer was met with strong demand as overall subscription was 2.1x, with the highest subscription recorded in the 2050s at N177.4 billion. The DMO also reduced the stop rate across all offers to 11.6 percent, 12.75 percent, and 12.80 percent while the total bid-to-cover ratio stood at 1.35x.