Nigerian Treasury Bills Yield Spikes as Naira Trades Flat
Riding far behind the headline inflation rate, the average yield on Nigerian Treasury Bills spikes 14 basis points to 5.52% in the secondary market, while bondholders experienced a mixed outing.
Naira however traded flattish at the investors and exporters foreign exchange window to close at N415.07 to United States dollar as Nigeria launches digital currency.
MarketForces Africa reported that analysts predicted that eNaira will curb arbitrage activities with the expectation of some sort of relief from currency speculations.
In the money market, ease on liquidity drain halted trendy short term rates as the average interbank rate dropped by 338 basis points to 15.75%, data from the FMDQ Exchange platform shows.
Interbank rate plunged following a 350 basis points slowdown in the Open Buy Back rate and 325 basis points slide in Overnight rate to close at 15.50% and 16.00%, respectively.
In the treasury space, Alpha Morgan Capital analysts said in a market report that treading activities at the secondary market traded on mixed sentiments in today’s session.
This happened following flatness at the short end of the curve, a slight decline of 1 basis point at the mid-end of the curve while the long end of the curve climbed by 4 basis points.
Consequently, the average yield climbed by 14 basis points to close at 5.52%. Similarly, the average yield at the open market operations (OMO) segment expanded by 3 basis points to 6.5%, according to Cordros Capital.
Meanwhile, amidst deliberate efforts to reduce government borrowing costs, activities at the FGN bond secondary market was somewhat mixed.
The mixed performance came as yields see 15 and 2 basis points jump at the short and mid ends of the curve while the long end of the curve declined by 5 basis points.
As a result, the average yield dropped by 3 basis points to close at 11.35%. Meanwhile, the Eurobond market traded on a bearish note with yield increase recorded across all instruments except the Jun-2022 instrument that remained flat.
In sum, the average yield climbed by 5 basis points to close at 6.54% while naira remained flat against the U.S. Dollar at the Investors and Exporters FX Window at 415.07.#Nigerian Treasury Bills Yield Spikes as Naira Trades Flat
Read Also: Average Rate on Nigerian Treasury Bills Spikes 30 Basis Points
