Lower Trading Actions Keep Yield on T-Bills Steadies
Lower trading actions in the secondary market keeps average yields on Nigerian Treasury Bills steadies midweek as Debt Management Office plans N250 billion Sukuk bond.
Elsewhere, the average yield at the open market operations (OMO) segment expanded by 5basis points to close at 6.1%.
Today’s trading result was similar to the outturn reported yesterday as liquidity strain resurface in the financial system, according to data from the FMDQ Exchange platform.
Accordingly, the average interbank rate climbed by 825 basis points to 13.25% following expansions in both the Open Buy Back and Overnight rates.
Alpha Morgan Capital report shows that both overnight lending and open buy back (OBB) rates jumped 825 basis points midweek to close at 13.00% and 13.50%, respectively.
In general, the fixed income market temperature has fallen as investors’ trade with utmost caution ahead of the Central Bank monetary policy meeting scheduled for November 23, 2021.
United States Treasury yields rise today ahead of Fed’s likely decision to taper asset purchases. The 10-year US Treasury yield rose by 1.9 basis points to almost 1.57%.
Fed will release its policy statement followed by Chair Jerome Powell’s press conference in which he is expected to flesh out plans to taper $120 billion of monthly asset purchases, marking the beginning of the end of an ultra-accommodative monetary policy.
The cut is anticipated to help counter the buildup of inflationary pressures in the US economy. Activities at the Nigerian Treasury Bills secondary market traded on a quiet note following flatness across the curve, according to Alpha Morgan Capital email sent to clients.
Consequently, the average yield sustained its prior position to close at 5.37%. Similar development played out in the federal government bond market.
Activity at the bond secondary market was mute as the short, mid and long tenors remained flat. As a result, the average yield held its ground to close at 11.24%.
An interesting development was however spotted in the FGN Eurobond market where traders’ notes show that activities at the space maintained a northward course for the third time this week as offers improved across the curve.
In sum, analysts at Alpha Morgan Capital said the average yield climbed by 3 basis points to close at 6.68% as Nigerian local currency, naira, gained 0.07% against the U.S. dollar at the Investors and Exporters foreign exchange window to close at N414.80.
#Lower Trading Actions Keep Yield on T-Bills Steadies
Read Also: Treasury Bills Yield Steadies as Naira Slides at Official FX Window
