NTB Yield Falls after CBN Keeps Auction Spot Rates
The Nigerian Treasury bills (NTB) yield declined as investors stepped up buying in the secondary market after the midweek auction, where the Central Bank kept spot rates across tenors unchanged.
The secondary market recorded notable yield contractions observed at the mid (-2bps) and long (-1bp) segments of the curve after the CBN raised about N900 billion at the primary market auction on Wednesday.
The authority maintained the status quo on spot rates at 15.95% for 91 days, 16.19% for 182 days, and 16.199% for 364 days Treasury bills, amid significant subscription levels.
Due to demand, yields on the 22-OCT Treasury bills fell by 10bps, and yields on the 07-JAN papers dipped by 13bps. Consequently, Average yields fell marginally by 1bp to settle at 17.41%.
Traders reported that activity was largely subdued as market participants digested the auction outcome and adjusted positions accordingly. Across the curve, most maturities closed unchanged from the previous session, reflecting a generally stable yield environment.
However, mild buying interest was observed at the longer end of the curve, particularly on the 07-Jan-2027 maturity, which declined by 10bps to close at 16.27%.
Analysts now expect the NTB market to remain cautious and range-bound in the near term, with direction likely to be driven by liquidity conditions. Africa Can Mobilise $1.43trn Domestically With Reforms – AfDB
