Treasury Investors Pick on New Bills Appealing Yield
Trading activities on Nigerian Treasury bills boomed in the secondary market after the spot rate on the 364-day paper was adjusted by 50 basis points to 23.50% during midweek auction.
The transaction was predominantly positive, particularly for the newly issued 1-year NTB paper, which is expected to mature on 20 November 2025 attracted considerable interest at around 22.70–23%, AIICO Capital Limited said in a note.
Fixed income market analysts said local investors seemed eager to capitalize on its appealing yield and secure their investments. Local investors sought to fill unmet bids at the primary market auction.
Accordingly, the average yield pared by 1bp to 24.1, according to Cordros Capital Limited. Across the curve, the average yield declined at the mid (-2 bps) and long (-2 bps) segments. The yield contraction was driven by demand for the 182-day to maturity (-2 bps) and 336-day to maturity (-2 bps) bills, respectively.
Meanwhile, the average yield expanded at the short (+2bps) end following selloffs of the 91-day to maturity (+24bps) bond. Similarly, the average yield dipped by 2 bps to 27.2% in the OMO segment.
The Debt Management Office (DMO) successfully rolled over N610.80 billion in maturing Treasury Bills at the Primary Market Auction (PMA). The rates for the 91-day and 182-day Treasury Bills remained unchanged, while the rate for the 364-day bill increased from 23.00% to 23.50%.
There was under-subscription for the 91-day and 182-day Treasury Bills, with subscription levels at 84.53% and 66.36% of the total offer, respectively. Allotments for these tenors were 84.53% and 59.47% of the total offer.
In contrast, the 364-day Treasury bill saw significant oversubscription, with total bids reaching N1.12 trillion, nearly double the N540.45 billion offered. This highlights strong investor demand for longer-tenor bills. #Treasury Investors Pick on New Bills Appealing Yield FX Stability: CBN Sells 122.671m Dollars to 46 Authorised Dealers
