Nigerian Treasury Bills Yield Shrinks to 20%
The average yield on Nigerian Treasury bills shrank in the secondary market to 20% following a mixed trading activities in the fixed income market.
In a note to investors, AIICO Capital Limited said there was significant selling pressure on the mid-dated papers, while mild bidding activity was observed on the long end of the curve.
The positioning at the long end of the curve was supported by robust liquidity level in the market.
In the money market, Nigerian interbank offered rates declined, Cowry Asset Management Limited told investors, reflecting an injection of liquidity into the system due to disbursements from FAAC.
Overall, the Open Repo Rate (OPR) declined by 5 bps to 23.45%, while the Overnight Rate (O/N) increased by 1 bp to 24.04%
Meanwhile, Nigerian Treasury True Yield was in the mixed bag reflecting the expectation for Nigerian T-bills auction on Wednesday, where higher rates and yields are expected at the primary market auction, traders said.
Across the curve, Cordros Capital Limited said the average yield pared at the short (-1bp) and mid (-1bp) segments driven by mild interest in the 79-day to maturity whose yield dipped by 1bp and 170-day to maturity with 1bp yield contraction.
Conversely, the average yield expanded at the long (+21bps) end due to profit taking activities on the 226-day to maturity, causing its yield to rise 90bps. Similarly, the average yield advanced by 124bps to 23.5% in the OMO bills segment.
By the end of the session, the average mid-rate had decreased by 2 bps to 20.16%. Investment firm AIICO Capital expects market to be skewed towards tomorrow’s auction. #Nigerian Treasury Bills Yield Shrinks to 20%
Reps Demand NCAT Director, Auctioneer’s Arrest Over 2 Choppers Sale
