Nigerian Treasury Bill Yield Dips Ahead of OMO Auction
With rising appetite for the naira asset, the average yield on Nigerian Treasury bills plunged slightly in the secondary market ahead of the Central Bank of Nigeria’s (CBN) open market operation (OMO) auction schedule for midweek.
Investors’ appetite for Treasury bills rose as inflation concerns triggered another rate adjustment expectation at the next primary market auction. The CBN will conduct a primary market auction, offering N150 billion to investors, authorised dealers, and other market participants.
In the secondary market, trading activities remained bullish as investors sought to fill lost bids at the primary market auction last week. Hence, the average yield contracted by 2 bps to 23%.
Across the curve, the average yield declined at the short (-1bp) and mid (-14 bp) segments, Cordros Capital Limited said in an email note. Traders attributed the yield contraction to buying interest on the 72-day to maturity (-1 bp) and 142-day to maturity (-79 bp) bills, respectively.
Conversely, the average yield expanded at the long (+3 bps) end as participants took profits off the 240-day to maturity bills, whose yield rose by 60 bps. Elsewhere, the average yield decreased by 2 bps to 24.2% in the OMO segment. #Nigerian Treasury Bill Yield Dips Ahead of OMO Auction Access Holdings Rated Buy on 56% Upside Potential
