The average yield on Nigerian Treasury bills slumped to 13.6% after the Central Bank’s midweek primary market auction (PMA). 

Ahead of the inflation rate figure for October 2023, the average yield on the Nigerian Treasury bills slid by 94 basis points to 13.37% amidst pressure on the financial system’s liquidity.

In the money market, pressures on financial system liquidity increase as short-term benchmark interest rates increase to double-digit highs following the debit for net NTB issuance worth N187.08 billion.

Data from FMDQ revealed that funding rates: the open repo rate (OPR) expanded by 38 basis points to 16.88%. Also, the overnight lending rate (OVN), increased 21 basis points to 17.63%.

Amidst shifting risk sentiment in government-traded financial instruments, trading activities in the secondary market for Treasury bills ended with a bullish sentiment.

The average yield on Treasury bills contracted by 94bps to 13.37%. In its market update, Cordros Capital told investors that across the curve, the average yield dipped at the short (-197bps), mid (-213bps), and long (-1bp) segments.

Traders noted that market participants demanded the 77-day to maturity bills which then lost 405bps, Increased demand for 119-day to maturity dragged its yield lower by 378bps while 350-day to maturity lost 1bp) bills.

Similarly, the average yield declined by 1bp to 15.9% in the OMO segment, traders said in their separate market update following the Central Bank of Nigeria primary market auction.  Nigeria Eurobond Yield Spikes over Sell Pressures