In December 2023, the Debt Management Office (DMO) sold T-bills valued at ₦1.18 trillion through its auctions. This represents a month-over-month (MoM) rise of 11.9 percent (₦126.06 billion) over the value of T-bills sold through its auctions in November 2023 (₦1.059 trillion).
In a similar vein, the DMO reopened two 10-year, one 15-year, and one 30-year FGN bonds in December 2023 and sold FGN Bonds for ₦273.63 billion.
The wholesale amounts to ₦160.87 billion, a 37.02 percent MoM decline from the amount sold in November 2023 (₦434.5 billion) for the identical FGN bond maturities, and a 23.9% under-subscription of the amount offered.
The CBN sold ₦100.8 billion worth of OMO Bills in December 2023, which is a MoM rise of 30.57 percent (₦23.6 billion) above the ₦77.2 billion that OMO Bills sold at its auctions in November 2023.
Compared to new non-sovereign bond listings worth ₦26 billion in November 2023, there were no new listings of non-sovereign bonds on FMDQ Exchange in December 2023.
The value of outstanding non-sovereign bonds decreased by 1.57 percent (₦35.1 billion) MoM from ₦2,239.11 billion in November 2023 to ₦2,204.01 billion in December 2023, as a result of corporate bonds worth ₦35.1 billion maturing and being redeemed.
Additionally, the overall value of CPs quoted on the FMDQ Exchange in December 2023 was ₦246.33 billion, which represents a MoM increase from the value of CPs quoted in November 2023 by 218.3% (₦168.93 billion).
Institutions from a range of industries, including financial services manufacturing, communications, real estate, commodities trading, retail, equipment leasing, agricultural, and logistics and transportation, issued quoted CPs.
Consequently, in December 2023, the MoM climbed by 1.85% (₦14.9 billion) to ₦821.25 billion due to the total outstanding value of CPs.
The FX derivatives market category had a total turnover of $6.47 billion (₦5.76 trillion) in December 2023, an increase of 82.25 percent ($2.92 billion) month over month from November 2023’s numbers.
The MoM rise in FX derivatives turnover was primarily driven by increases in FX swaps, FX forwards, and FX futures transactions, which accounted for 82.84 percent ($2.8 billion), 41.18 percent ($0.07 billion), and $0.05 billion, respectively.
The near month contract (NGUS DEC 27, 2023) expired in the Cleared Naira-Settled (USD/NGN) Non-Deliverable Forwards market, and open positions with a total notional value (NV) of $0.35 billion were settled.
Consequently, as of December 29, 2023, the cumulative net value (NV) of open cleared naira-settled non-deliverable futures contracts dropped for the sixth consecutive month to around $3.2 billion. This amounts to a 9.86% MoM ($0.35 billion) and 25.41 percent YoY ($1.09 billion) decline, respectively.
