Nigerian Treasury Bills Yield Rises to 11%
Ahead of today’s primary market auction by the Central Bank of Nigeria, the benchmark yield on Treasury bills inched higher to 11% following selloffs in the secondary market on Tuesday.
Trading activities in the segment ended on a bearish note as portfolio investors adjusted their strategy amidst a delayed monetary policy committee meeting.
The apex bank as part of efforts to manage liquidity level in the economy would roll over maturing bills worth more than N104 billion at the auction.
Due to selloffs in the space, the average yield expanded by 47bps to 11.0%. Across the curve, the average yield closed flat at the short and mid segments.
However, yield advanced at the long (+46bps) end following sell pressures on the 352-day to maturity (+16.05ppts) bill, according to Cordros Capital Limited. Nigeria Eurobond Slumps after CBN Resumes OMO Auction
Elsewhere, the average yield pared by 1bp to 14.6% in the OMO segment. In the forex market, the naira appreciated by 3.9% to N806.73 at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Healthy improvement in system liquidity in the financial system dragged money market benchmark interest downward again.
Data from FMDQ platform showed that the open repo rate (OPR) dropped by 6 basis points to 15.55 yesterday. In the same vein, the overnight lending rate contracted by 21 basis points to 16.0%, in the absence of any significant inflows into the system.
The FGN bond secondary market traded with mixed sentiments, albeit with a bullish tilt, as the average yield pared by 1bp to 15.6%.
