Benchmark Yield on Nigerian Treasury Bills Slides to 13.4%
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