DMO sells N1.1 trillion treasury bills in one month

The Debt Management Office (DMO) sold T-bills valued at ₦1.18 trillion across its auctions in December 2023, representing 11.9 per cent (₦126.06 billion) month-on-month (MoM) increase on the value of T-bills sold across its auctions in November 2023 (₦1.059 trillion).

Similarly, the DMO sold FGN Bonds worth ₦273.63 billion via the reopening of two 10-year, one 15Y, and one 30-year FGN bonds in December 2023.

The total sale represents a 23.9 per cent under-subscription of the amount offered and a 37.02 per cent (₦160.87 billion) MoM decrease on the amount sold in November 2023 (₦434.5 billion) for the same FGN bond maturities.

In December 2023, the CBN sold OMO Bills worth ₦100.8 billion, representing a 30.57 per cent (₦23.6 billion) MoM increase on the value of OMO Bills sold across its auctions in November 2023 (₦77.2 billion).

There were no new listings of non-sovereign bonds on FMDQ Exchange in December 2023, compared to new non-sovereign bonds listings worth ₦26 billion in November 2023.

However, corporate bonds worth ₦35.1 billion matured and were redeemed resulting in a 1.57 per cent (₦35.1 billion) MoM decrease in the value of non-sovereign bonds outstanding from ₦2,239.11 billion in November 2023 to ₦2,204.01 billion in December 2023.

Also, the total value of CPs quoted on FMDQ Exchange in December 2023 was ₦246.33 billion, representing a MoM increase of 218.3 per cent (₦168.93 billion) from the value of CPs quoted in November 2023.

Quoted CPs were issued by institutions from various sectors including financial services manufacturing, telecom, agriculture, real estate, commodities trading, retail, equipment leasing and logistics and transportation.

As a result, the total outstanding value for CPs increased MoM by 1.85 per cent (₦14.9 billion) to ₦821.25 billion in December 2023.

Total turnover in the FX derivatives market segment in December 2023 was $6.47 billion (₦5.76 trillion), representing a MoM increase of 82.25 per cent ($2.92 billion) from November 2023 figures.

The MoM increase in the FX derivatives turnover was jointly driven by the 82.84 per cent ($2.8 billion), 41.18 per cent ($0.07 billion) and $0.05 billion increase in FX swaps, FX Forwards and FX Futures transactions, respectively.

In the Cleared Naira-Settled (USD/NGN) Non-Deliverable Forwards market, the near month contract (NGUS DEC 27, 2023) expired and open positions with a total notional value (NV) of $0.35 billion were settled.

As a result, the cumulative NV of open cleared naira-settled non-deliverable forwards contracts decreased for the sixth consecutive month to circa $3.2 billion as at December 29, 2023. This represents a MoM and YoY decrease of 9.86 per cent ($0.35 billion) and 25.41 per cent ($1.09 billion), respectively.

In December 2023, there were no rates quoted for cleared naira-settled non-deliverable forwards.

Conversely, indicative non-deliverable FX forward rates increased across all tenor buckets.

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