Treasury Bills Yield Slips 3bps as Investors Seek to Reload
The average yield on Nigerian Treasury bills declined by three basis points (bps) in the secondary market after oversubscribed midweek auction conducted by the Central Bank.
Investors who lost their bids returned to secondary market with buying interest on the NOV-06 (-91bps) paper at the mid-segment (-12bps) of the curve and the new 364-day bills priced higher at 19.63% at the main auction.
Across the curve, the average yield increased at the short (+1bp) end driven by the sell offs of the 91DTM (+14bps) bill, Cordros Capital Limited said in a note.
The yield on bills however contracted at the mid (-1bp) and long (-6bps) segments, following demand for the 182-day to maturity (-91bps) and 350-day to maturity (-6bps) bills, respectively.
The bills market was relatively active following CBN auction where the Apex Bank sold ₦598.33 billion across the 91, 182 and 364-day tenors. The auction recorded strong demand, with subscriptions hitting ₦1.08 trillion against an offer size of ₦550 billion.
While stop rates for the 91 and 182-day papers held firm at 18.00% and 18.50% respectively, the 364-day tenor edged up 3bps to 19.63%.
Trading activity centred on the new 1-year bill with maturity date of 07-May-2026 in the secondary market after the auction, with offers around 19.40%, alongside sell-offs in long-dated OMO bills.
Despite scattered interest, only a handful of trades materialized, leaving the benchmark NTB mid-rate to close at 19.64%, AIICO Capital Limited said in a note. Analysts anticipate the auction results will set the tone for trading session on Friday.
Similarly, the average yield contracted by 2bps to 26.8% in the OMO segment. #Treasury Bills Yield Slips 3bps as Investors Seek to Reload Lagos, BoI to Sign MoU to Improve SMEs Access to Finance
