Nigerian OMO, Treasury Bills Yields Blend around 25%
The average yield on Nigerian Treasury bills and Open Market Operations (OMO) bills have blended around 25% apiece in the secondary market on Wednesday. The development followed rapid selloffs in the treasury bills market. On the other hand, OMO bill segment has been trading quietly.
Investors expect rates to swing after the benchmark interest rate tightening by the monetary authority in an effort to stem rising inflation figure.
The authority has started showing possibility of additional pips on spot rates, as the Debt Management Office latest bonds auction results suggest.
In the market, fixed income investors riskoff sentiment has triggered selling spree on naira asset. The uncertainties in the local economy has given portfolio investors an opportunity to reassess market development that align with their respective investment targets.
Treasury bill market ended with pocket of transactions on Wednesday, albeit with a bearish tilt, as the average yield inched higher by 1bp to 25.2%.
Across the curve, the average yield contracted at the short (-1bp) and mid (-2bps) segments due to interests in the 85 day to maturity which shed -1bp, accor4ding to Cordros Capital Limited.
The market also experienced sell down in 176-day to maturity bills, causing -2bps slide in its associated yield.
Conversely, traders said the average yield expanded at the long (+4bps) end driven by sell pressures on the 295-day to maturity bills, whose yield gained +66bps.
In the OMO segment, the average yield declined by 2bps to 25.3%, investment firm told investors in an emailed note.Bankers Back Windfall Tax, say it Will Alleviate Poverty
