The Debt Management Office (DMO) sold Treasury Bills (T.bills) valued at N617.92 billion across its auctions in June 2024.
This was contained in the FMDQ Markets Monthly Report for June seen by Nairametrics.
The amount represents a 32.37% (N295.73 billion) Month on Month (MoM) decrease on the value of T-bills sold across its auctions in May 2024 (N913.64 billion).
Similarly, the DMO sold FGN Bonds worth N297.01 billion in June 2024. This represented a 56.46% (N385.06 billion) MoM decrease on the amount sold in May 2024 (N682.07 billion).
The report noted that the ratio of sovereign securities sold by the DMO relative to the amount offered across its auctions in June 2024 was 125.07% and 66.00%, for T.bills and FGN Bonds, respectively.
In June 2024, the CBN sold OMO Bills worth N1,773.16 billion in the primary market, representing a 229.40% MoM (N1,234.87 billion) increase on the amount sold in May 2024 (N538.29 billion).
Corporate bonds:
According to the report, there were no new listings and redemptions of Non-Sovereign Bonds listed on FMDQ Exchange in June 2024, as such the value of Non-Sovereign Bonds outstanding remained flat at N2,192.02 billion.
Commercial Papers
The report stated that the total value of CPs quoted on FMDQ Exchange in June 2024 was N92.54 billion, representing a MoM decrease of 64.16% (N165.64) from the value of CPs quoted in May 2024 (N258.19 billion).
“In June 2024, quoted CPs were issued by institutions from the Financial Services (8) and Manufacturing sectors (3) only.
As a result, the outstanding value for CPs increased MoM by 5.64% (N52.21 billion) to N978.52 billion in June 2024 offsetting the impact of the N39.70 billion worth of CPs that matured during the review period,” the report said.
Market Turnover by Products
The report noted that in June 2024, the total secondary market turnover on FMDQ Exchange was ₦28.43 trillion, representing a MoM decrease of 31.82% (N13.27) and a YoY increase of 30.77% (6.69 trillion) from May 2024 and June 2023 figures, respectively.
According to FMDQ, foreign Exchange (FX) and Money Market (MM) transactions dominated secondary market activity, jointly accounting for 72.83% of the total secondary market turnover in June 2024.
Total spot market turnover for all products traded in the secondary market in June 2024 was ₦25.95 trillion, representing a MoM decrease of 35.16% (N14.07 trillion) from May 2024 figures.
It noted that the MoM decrease in total spot market turnover was driven by the decrease in turnover across all spot market product categories, as FX, FI and MM turnover decreased MoM by 38.84% (N6.35 trillion), 30.47% (N3.38 trillion) and 34.50% (N4.33 trillion), respectively.
According to the report, the decrease in MM turnover was driven by the MoM decrease in Repos/Buy-backs and Unsecured Placement/Takings transactions.
Similarly, the decline in FI turnover was driven by the decrease in FGN Bonds, T.bills, OMO Bills, and CBN Special bills offsetting the increase in Other Bonds.