Nigeria Treasury Bills Yields Steady, Rate on 1-Year Rises
The average yield on Nigerian Treasury bills (NTB) steadied at 17.77% in the secondary market as investors shifted attention to the midweek auction. Trading activity was relatively quiet across the short, belly, and long end of the curve due to N220 billion Treasury bill auction floated by the authority.
Across the curve, the average yield contracted at the short (-1 bp) and mid (-1 bp) segments, driven by the demand for the 80-day to maturity (-1 bp) and 171-day to maturity (-1bp), bills, respectively.
Meanwhile, yield expanded at the long (+2 bps) end following sell-offs of the 353-day-to-maturity (+58 bps) bill. Elsewhere, the average yield declined by 4 bps to 24.7% in the OMO segment.
Auction results revealed that investors staked N366.55 billion on the offer, while N178.25 billion was allotted. The stop rates for the 91- and 182-day treasury bills were unchanged from the previous auction at 15% and 15.50%. However, spot rate for one-year paper increased by 62 basis points to 16.50%
Increased activity is anticipated on Thursday as investors look to lock in profits while also covering unfilled bids. In July, average yield across benchmark Treasury papers dropped sharply by 255 bps, marking a strong reversal from June’s bearish tone. FirstHoldCo: Strong Top-Line Growth, But Profitability Tells a Cautionary Tale
