T-Bills Yields Close Flat Ahead of Auction

T-Bills Yields Close Flat Ahead of Auction

Trading activities on Nigerian treasury bills (NTB) ended on a quiet note in the secondary market on Monday as asset/fund managers’ moods swung.

The downward slope of the yield curve resulted from a pocket of trade records despite the reduced liquidity level in the financial system, pushing benchmark short term benchmark rates up.

According to market data, the open repo rate (OPR), and the overnight lending rate (OVN), increased by 11 basis points to 11.63% and 13 basis points to 12.00% respectively.

The trading session ended quite ahead of Wednesday’s central bank of Nigeria (CBN) treasury bills auction sales. Then, the average secondary market yield on the Treasury bills instrument closed flat at 6.35%.

Fixed income securities market analysts reported that the 364-day yield declined by a basis point on Monday to 7.8%.

Market analysts said they expect spot rates to swing left as investors demand higher returns on investment assets amidst rising inflation. In the fixed income market, inflation pressure has made interest in fixed income securities.

However, large-ticket fixed-interest securities investors continue to play, organising portfolios to optimise returns. Analysts said trade pattern has always been supported by the size of liquidity levels in the financial system at the time.

#T-Bills Yields Close Flat Ahead of Auction Naira Steadies as Banks Issue Update on FX Purchase