A monthly report by FMDQ Markets has revealed that the Debt Management Office (DMO) sold Treasury Bills valued at N406.10 billion across its auctions in July 2023.
The figure represents a growth of 0.39 per cent (N1.59 billion) Month-on-month (MoM), an increase in the N404.51 billion recorded in June 2023 ().
Similarly, the DMO reopened two (2) 10Y, one (1) 15Y and one (1) 30Y FGN Bonds worth N657.84 billion in July 2023.
The report noted that the total sale represented a 182.73 per cent oversubscription of the amount offered, and a 39.03 per cent (N184.68 billion) MoM increase on the amount sold in June 2023 (N473.16 billion) for the same FGN Bond maturities.
FMDQ pointed out that the CBN did not conduct any public OMO Bills auctions in July 2023.
The report further showed that there were no corporate bonds listed on the FMDQ Exchange in July 2023 compared to N17.50 billion worth of corporate bonds listed in June 2023 and as a result, the total outstanding value for corporate bonds remained unchanged at N1,757.95 billion in the review month.
On Commercial Papers, the report said the total value quoted on the FMDQ Exchange in July 2023 was N117.32 billion, representing a MoM increase of 42.85 per cent (N35.19 billion) from the value of Commercial Papers quoted in June 2023.
“Quoted CPs were issued by institutions from various sectors including Financial Services (5), Manufacturing (4), Real Estate (3), Agriculture (2), Chemical Supply & Oil Field Services (2), Commodities Trading (1), Public Sector (1), Telecommunications (1) and Consumer Staples (1).
As a result, the total outstanding value of CPs increased MoM by 14.10% (N117.32 billion) to N949.26 billion,” it said.
According to the report, secondary market turnover on the FMDQ Exchange in the review month was N19.92 trillion, representing a MoM decrease of 8.37 per cent (1.82 trillion) and a YoY increase of 0.81% per cent (N0.16 trillion) from June 2023 and July 2022 figures, respectively.
It further noted that Foreign Exchange (FX), Money Market (MM), and CBN Bills transactions dominated secondary market activity, accounting for 73.98 per cent of the total secondary market turnover in July 2023.
“Total spot market turnover for all products traded in the secondary market was N18.47 trillion in July 2023, representing a MoM increase of 3.68% (N0.66 trillion) from June 2023 figures.
The MoM increase in total spot market turnover was driven by an improvement in turnover across MM and FI transactions which increased MoM by 16.35 per cent (N0.90 trillion) and 12.16 per cent (N0.91 trillion), respectively, despite the MoM decline in FX transactions by 24.34 per cent (N1.16 trillion).
The uptick in MM turnover was driven by an increase in Repos/Buybacks, offsetting the MoM decline in Unsecured Placement/Takings transactions. Likewise, the improvement in FI turnover was driven by a MoM increase across all FI products, excluding CBN Special Bills and FGN Bonds which decreased in the review period,” the report noted.
According to the report, Spot FX market turnover was N3.61 trillion ($4.66 billion) in July 2023, representing a MoM decrease of 24.34 per cent (N1.16 trillion) from the turnover recorded in June 2023 (N4.77 trillion).
“In the FX Market, the US Dollar appreciated against the Naira, with the spot exchange rate ($/₦) increasing by 22.94% ($/N143.60) to close at an average of $/N769.51 in July 2023 from $/N625.90 recorded in June 2023.
Further, exchange rate volatility decreased in July 2023 as the Naira traded within an exchange rate range of $/N740.08 – $/N803.90 compared to $/N464.67 – $/N770.38 recorded in June 2023,” the report said.
The report stated that the (FI) market turnover was N8.43 trillion in July 2023, representing a MoM increase of 12.16 per cent (N0.91 trillion) from the turnover recorded in June 2023 (N7.52 trillion).
“The MoM increase in the FI market turnover was driven by the 52.55% (N0.94 trillion), 63.75 per cent (N0.98 trillion), and 402.37 per cent (N0.03 trillion) uptick in turnover across T.Bills, OMO Bills,
Other Bonds which offset the MoM decrease in CBN Special Bills and FGN Bonds transactions by 57.36 per cent (N1.00 trillion) and 1.24 per cent (N0.03 trillion), respectively,” the report noted.
