Nigerian Treasury Bills Yield Declines Ahead of Auction
Investors reduce their Treasury bills portfolios in the secondary market in preparation for the midweek auction. Fixed income market analysts at TrustBanc Financial Group said the initial bullish bias on selected papers was offset by selling pressures from investors adjusting their positions and raising liquidity ahead of the auction.
The Central Bank of Nigeria (CBN) is scheduled to conduct a primary market auction where the authority will be offering investors about N583 billion worth of Treasury bills paper.
At the previous auction, the Debt Management Office (DMO) who conducted the auction kept the spot rate steady at the short and midrange, but the rate at the long end was repriced.
The 364-day, which received huge demand, was hiked 50 basis points to 23.50% from 23%. In preparation for the midweek auction, activities in the Treasury bills secondary market were bearish, a slew of analysts said in their reports.
The selloffs nudged the average yield higher by 30 basis points to 25.4%, fixed income market analysts at Cordros Capital Limited said in a note to investors.
Fixed income market analysts said across the curve, the average yield expanded at the short (+31 bps) and mid (+81 bps) segments. The expanded yield was attributed to selloffs of the 65-day to maturity (+143bps) and 170-day to maturity (+120bps) bills, respectively.
However, yield declined at the long (-2 bps) end following buying interests in the 324-day to maturity (-2 bps) bill. Most interest centered on the 20 November 2025 paper, with trades occurring around 22.00% levels.
In contrast, the average yield contracted by 2 basis points to 27.0% in the OMO bills segment. in the secondary market, # Nigerian Treasury Bills Yield Declines Ahead of Auction FBN Holdings Sheds 8% as Investors Exit Positions
