Business News

DMO sold treasury bills valued at N457.20 billion in August- Report

The Debt Management Office (DMO) sold Treasury Bills (T.bills) valued at N457.20 billion across its auctions in August 2023.

This was contained in the FMDQ Markets Monthly Report for August seen by Naijaonpoint.

The amount represents 12.58% (N51.10 billion) Month on Month (MoM).

An increase in the value of T-bills sold across its auctions in July 2023 (N406.10 billion).

Similarly, the DMO sold FGN Bonds worth N230.26 billion in June 2023 via the reopening of two (2) 10Y, one (1) 15Y, and one (1) 30Y FGN Bond in August 2023.

The report noted that the total sale represented a 63.96% undersubscription of the amount offered1 and a 65.00% (N427.58 billion) MoM decrease on the amount sold in July 2023 (N657.84 billion) for the same FGN Bond maturities.

FMDQ noted that in August 2023, the CBN sold OMO Bills worth N150.00 billion in its first public OMO Bills auctions in 2023, signaling a potential end to its consecutive seven months no auctions trend.

According to the report, in August 2023, corporate bonds worth N46.00 billion were listed on the FMDQ Exchange, compared to July 2023 when there were no corporate bond listings.

According to the report, secondary market turnover on the FMDQ Exchange in August 2023 was N17.68 trillion, representing a MoM decrease of 11.24% (2.24 trillion) and a YoY increase of 13.84% (N2.15 trillion) from July 2023 and August 2022 figures, respectively.

Foreign Exchange (FX), Money Market (MM), and CBN Bills transactions dominated secondary market activity, accounting for 80.99% of the total secondary market turnover in August 2023.

Total spot market turnover for all products traded in the secondary market was N16.54 trillion in August 2023, representing a MoM decrease of 10.45% (N1.93 trillion) from the July 2023 figures.

According to the report, Spot FX market turnover was $4.37 billion (N3.34 trillion) in August 2023, representing a MoM decrease of 6.13% ($0.29 billion) from the turnover recorded in July 2023 ($4.66bn).

The report stated that the Fixed Income (FI) market turnover was N7.12 trillion in August 2023, representing a MoM decrease of 15.54% (N1.31 trillion) from the turnover recorded in July 2023 (N8.43 trillion).

MoM decrease in the FI market turnover was driven by the 33.69% (N0.92 trillion), 4.99% (N0.12 trillion), 36.79% (N0.89 trillion) and 36.09% (N0.01 trillion) decline in turnover across T.Bills, OMO Bills, FGN Bonds and Other Bonds, offsetting the 85.08% (N0.63 trillion) MoM uptick in CBN Special Bills transactions, respectively.

As a result, the trading intensity (TI) for T.Bills and FGN Bonds decreased MoM by 0.20 and 0.05 to 0.39 and 0.08, respectively.