The Debt Management Office (DMO) has reported that N324.43 billion was generated as the total value of Treasury Bills (T-Bills) sold by the Federal Government across its auctions in May 2023 is.
The FMDQ Exchange Markets Monthly Report just published indicated that the debt instrument’s value in the month under review was higher by 15.41% or N43.33 billion month-on-month (M-o-M) than the N281.10 billion value of T-bills sold across its auctions in the preceding month.
The report also showed that the DMO re-opened two (2) 10Y, one (1) 20Y, and one (1) 30Y FGN Bonds worth N545.26 billion in May 2023, which represented 151.46% oversubscription of the amount offered, and 1.30% or N7.21 billion decrease (M-o-M) on the N552.26 billion sold in April 2023 for the same FGN Bond maturities.
The FMDQ Exchange reported that the Central Bank of Nigeria (CBN) had not auction OMO Bills in the primary market for the fifth consecutive month in May 2023.
According to the report, the total value of corporate bonds listed on the FMDQ Exchange in the month under review was N31.00 billion compared to the previous month which witnessed no listings.
The Exchange further clarified: “In the review month, the corporate bond listings emanated from issuers in the Financial Services and Oil & Gas sectors, respectively.
As a result, the total outstanding value for corporate bonds increased MoM by 1.71% (N27.50 billion) from N1,609.49 billion in April 2023 to N1,636.99 billion in May 2023,” it added.
On quoted Commercial Papers (CPs) in May this year , report reflected that the total value of Commercial Papers (CPs) quoted on the FMDQ Exchange was N163.77 billion, representing an M-o-M increase of 43.32% or N49.50 billion increase from the value of CPs quoted in April 2023.
This is even as it revealed that Secondary market turnover on FMDQ Exchange in May 2023 was N15.78 trillion, representing an M-o-M and Y-o-Y increase of 25.67% or N3.22 trillion and 2.53% or N0.39 trillion from April 2023 and May 2022 figures respectively.
A further analysis of the report revealed that that foreign Exchange (FX), Money Market (MM), and CBN Bills transactions dominated secondary market activity in May 2023, accounting for 80.25% of the total secondary market turnover.
The FMDQ Exchange further clarified: “Total spot market turnover for all products traded in the secondary market was N13.37 trillion in May 2023, representing an MoM increase of 26.21% (N2.78 trillion) from April 2023 figures.
The MoM increase in total spot market turnover was jointly driven by an improvement in turnover across all products with FX, FI, and MM transactions increasing MoM by 31.74% (N0.69 trillion), 25.97% (N1.31 trillion) and 22.98% (N0.77 trillion), respectively.
The increase in MM turnover was driven by an uptick in Repos/Buy-backs and Unsecured Placement/Takings transactions. Likewise, the improvement in FI turnover was driven by an MoM increase across all FI products in the review period”, it added.
Also the report showed that Spot FX market turnover was N2.88 trillion ($6.21 billion) in May 2023, representing an MoM increase of 31.74% (N0.69 trillion) from the turnover recorded in April 2023 (N2.18 trillion).
