Weekly Update on NT-Bills [25.40% down 13bps] and FGN Bond [19.16% up 2bps]

Weekly Update on NT-Bills [25.40% down 13bps] and FGN Bond [19.16% up 2bps]
(Source: Afrinvest Securities Limited, Date: 30-Dec-2024)

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Bearish Trend Persists, as Average Yield declined by 13bps W-o-W to 25.40%

The Nigerian Treasury Bills market witnessed cautious sentiment throughout the week, with investors focused on cherry-picking attractive yields. Marginal declines were observed across selected maturities, reflecting improved appetite for short-term instruments. w-o-w, the average benchmark yield declined by 13bps to 25.40%, supported by improved market participation after the holiday break.

Across the curve, activity was notable at the short and mid ends, with increased trading on the 91-day and 182-day tenors. The 91-day NTB trades settled around 17.50%-18.00%, while the 182-day NTB recorded bids within the 16.50%-18.50% range. Meanwhile, the long end remained less active, with limited bids observed on the 364-day NTB at 20.00%-21.00%. This reflected a cautious sentiment towards longer-dated instruments.

The Primary Market Auction ("PMA") conducted on 27-Dec-24 saw the Debt Management Office (DMO) rolled over a total of ₦332.53bn across three tenors. The stop rates were maintained at 18.00%, 18.50%, and 22.90% for the 91-day, 182-day, and 364-day tenors, respectively. Total subscriptions reached ₦663.18bn, representing an oversubscription of 99%, with allotments amounting to ₦332.53bn.

Please see a detailed summary of the NT-Bills PMA below:

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This week, we expect sustained cautious sentiment in the NTB secondary market as investors continue to evaluate the current yield environment. Thus, we advise investors to position in relatively attractive bills across the yield curve, while also remaining alert for possible corporate offerings.

Please see indicative secondary market NT-Bills rates below:

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Rates are valid till 2:00pm today (30-Dec-24)

*Please note that the minimum subscription for NT-Bills is N100, 000.00

FGN Bond Market: Average Yield Increases By 2bps W-o-W to 19.16%

The domestic FGN Bonds secondary market recorded mixed trading activities during the week, with minimal shifts in yields as market sentiment remained subdued. w-o-w, the average benchmark yield increased by 2bps, closing at 19.16%.

In more details, the short end saw marginal yield movements, with the 21.00% FGN Mar 2026 paper declining by 1bp on Monday. However, this was offset by slight increases in the mid-tenor 12.50% FGN Jan 2026 (+6bps) and the long-tenor FGN Feb 2031 (+4bps). Trading volumes remained muted across most segments, highlighting the cautious stance of market participants.

Going into the week, we expect sustained sell offs as investors continue to filter their position in attractive yields. We therefore advice investors to take advantage of maturities with relatively attractive offers in the secondary market particularly at the short end of the curve.

Please see below FGN bond secondary market rates:

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Rates are valid till 2:00pm today (30-Dec-24)

*Please note that the minimum subscription for FGN Bond is N20, 000,000.00

To indicate your interest and for further enquiries, kindly send an email to brokerageteam@afrinvest.com or call any of the contacts below:

Lagos: Oladayo - +234 916 568 9805

Deborah - +234 803 522 3512

Margaret - +234 806 407 1983

Justice - +234 809 731 6151

Victoria - +234 805 022 4254

Adebimpe - +2349139220268

Port Harcourt:  Mishael -   +234 811 989 8352

Uduak - +234 809 023 4238



Abuja: Bolanle - +234 802 304 5283
                            Favour - + 234 701 471 6268

Onitsha: Paul - +234 803 707 1720

Haniel - +234 814 845 9513

Imuetinyan - +2348142266258

Kano: Moses - +234 803 589 9665

Helen - +234 813 669 6980

Thank you for choosing Afrinvest Securities Limited.

Best regards,