Treasury Bills Market Rally Ahead of CBN Midweek Auction
The average yield nosedived as trading activities on Nigerian Treasury bills ended on a bullish note in the secondary market ahead of the midweek auction.
The average yield declined at the short (-1 bp), mid (-1bp) and long (-2bps) segments, driven by demand for the 79-day to maturity (-1bp), 142-day to maturity (-2 bps), and 212-day to maturity (-2 bps) bills, respectively, Cordros Capital Limited said in a note.
The Central Bank of Nigeria (CBN) is schedule to sell treasury bills worth N513.43 billion across 91, 182, and 364-day papers at the primary market auction on Wednesday.
Analysts expect the liquidity condition to impacts demand following huge OMO bills sales on Tuesday. On Tuesday, the CBN offered ₦300 billion but ended up selling about ₦1.447 trillion.
According to the auction results, all the volume was allocated to the long-end tenor, with no subscriptions or allotments for the short and medium tenors.
As a result, the secondary market for Nigerian Treasury bills experienced mixed trading with a bullish tilt as investors repositioned their portfolios. Analysts noted that investors are anticipating higher rates at the auction.
Traders at TrustBanc Capital Limited said buying interest was recorded on selected maturities across the yield curve, particularly for the 20-Feb maturity, closing at 22.45%.
Overall, the average benchmark yield declined by a basis point to close at 24.28%. The average yield declined by 2 bps to 26.2% in the OMO segment due to buying momentum. #Treasury Bills Market Rally Ahead of CBN Midweek Auction Equities Investors Wealth Rises as Nigerian Exchange Rally
