Yield Dips to 25.50% ahead of N515bn Treasury Bills Auction
The average yield on Nigerian Treasury bills (NTB) declined a basis points to 25.5% ahead of primary market auction (PMA) on Wednesday. The fixed income market ended on a bullish note on Tuesday with investors increasing bets on naira assets ahead of the Central Bank of Nigeria (CBN) N515 billion Treasury bill auction.
The offer will be split across the 91, 182, and 364-day papers. Hence, fixed income market analysts are expecting a quiet session at the secondary market today. The auction which is expected to be conducted by the Debt Management Office on behalf of the monetary authority is projected to be oversubscribed.
Treasury bills market participants maintained a cautious stance with bullish tilt, and still focus on the OMO bills auction. Buying interest was recorded on selected maturities across the yield curve, particularly for the 6-Mar maturity, closing at 25.37%.
Traders said Treasury bills market began quietly, influenced by an OMO auction announcement. As trading progressed, demand surged, especially for short-to-mid maturities. The 25th Dec bill saw strong interest, closing around 21.90%.
Across the curve, the average yield expanded at the short (+2bp) end due to the sell-off on the 79-day to maturity (+18bps) but declined in the mid (-2bps) and long (-2bps) segments, according to Cordros Capital
This was driven by interest in the 170-day to maturity (-2bps) and 317-day to maturity (-2bps) bills, respectively. Overall, the average benchmark yield declined by a basis point to close at 25.50%. #Yield Dips to 25.50% ahead of N515bn Treasury Bills Auction Cryptocurrencies Market Cap Rises as Bitcoin Pops Higher
