T-Bill Rate Steady as Naira Gains at Investors Window
Average yield on the Nigerian Treasury Bill was flat Thursday as Naira gains at the Central Bank’s investors and exporters window. Disinflation readings for April and May had dashed hope for further upward yields repricing, while analysts at Atlass Portfolios predicted a strong slow down for June.
Amidst slowdown in yields repricing in the fixed income space which has resulted to a tepid outing in rennet time, the Nigerian Treasury Bill secondary market rate closed flat again.
Fixed income market data shows that the average yield was flat at 6.6% just as liquidity pressure in the financial system eased slightly.
Elsewhere, the average yield at the open market operations (OMO) segment pared by a basis points to 9.9%. In the bond space, trading in the secondary market was bullish.
Treasury bond record showed that the average yield contracted by 11 basis points to 11.6%. Cordros Capital Limited fixed income note showed that across the benchmark curve, average yield contracted at the short (-1bp), mid (-26bps), and long (-11bps) segments.
The contraction was attributed to demand for the JAN-2022 (-3bps), JUL-2030 (-44bps) and JUL-2034 (-55bps) bonds respectively.
The overnight lending rate was flat at 12.0% in the absence of any significant movement in system liquidity – due to dearth of inflow from open market operations.
On Wednesday, overnight lending rate contracted by 525 basis points to 12.0% as inflows from Federal Accounts Allocation Committee (FAAC) payment boosted system liquidity.
The naira appreciated at the investors and exporters window by 0.2% to N410.70 to a United States dollar but stayed flat at N503.00 at the parallel market.
T-Bill Rate Steady as Naira Gains at Investors Window
