T-Bills Yield Steadies on Thin Trading as Spot Rates Dip
In the secondary market, the average yield on the Nigerian Treasury bills steadies at 3.26% on Thursday after spot rates decline at the primary market auction conducted by the Central Bank (CBN) on Wednesday.
At yesterday’s Treasury bills auction, there were heavy subscriptions as investors continue to hunt for value but CBN offered just N58.04 billion for sale compare to a total subscription of N364.65 billion.
Accordingly, the CBN allotted N5.91 billion of the 91-day, N6.85 billion of the 182-day, and N159.85 billion of the 364-day bills – at respective stop rates of 1.74% (from 1.75%), 3.00% (from 3.28%), and 4.00% (from 4.10%).
Elsewhere, the average yield expanded by 2 basis points to 3.8% at the OMO segment – the CBN OMO auctions spot rates have been relatively stable. In the money market, there was mixed result as a relatively stable liquidity position in the financial system caused rates to swing both ways on Thursday.
The Open Buy Back rate dropped by 8 basis points while the overnight rate climbed by 8 basis points to close at 4.75% and 5.25%, respectively. Thus, the average interbank rate retained its prior position to close at 5.00%.
Activities at the Nigerian Treasury Bills secondary market was quiet as investors assimilate, and price in headline inflation rate pressures. Consequently, the average rate remained flat to close at 3.26%. Also, trading activities at the FGN bond secondary market was bullish on Thursday. Traders said the average yield remained flat to close at 10.41%.
Following an urgent $1.25 billion Eurobond raised by DMO, activities at the FGN Eurobond market was mostly bearish. Traders said sell-side pressure was seen across the sovereign curve, except for the Jun-2022 instrument that witnessed demands and the Nov-2047 instrument that remained flat.
In sum, the average yield was up by 2 basis points to close at 7.65% after tracking lower in the week following moderate demand. Elsewhere, the naira depreciated by 0.04% against the U.S. Dollar at the Investors and Exporters FX window to close at N416.67 per dollar. #T-Bills Yield Steadies on Thin Trading as Spot Rates Dip
READ: Treasury Bills Yield Steadies as Naira Slides at Official FX Window
