Treasury Bills Yield Eased to 24.29% Ahead of Auction
The average yield on Nigerian Treasury bills decreased moderately due to activities of buy-side actors in the secondary market. Though traders said trading activities were mixed due to tight liquidity conditions in the financial system – some investors were seen taking positions while some selloffs were also noticed.
With portfolio investors seeking to optimse returns, transactions conducted on Treasury bills were generally mixed as the Debt Management Office (DMO) prepared to launch its primary market auction on behalf of the monetary authority.
The DMO will be offering about N610 billion across the 91, 182, and 364-day papers to investors for subscriptions at the primary market auction on Wednesday.
According to traders, the Treasury bills secondary market remained relatively subdued, though there was a mixed undertone. Some market participants or investors adopted a cautious stance in anticipation of the midweek Treasury bills auction.
The trades consummated were predominantly by sellers who sought to raise liquidity. Traders were conducted on the long-term notes, with a particular focus on the November 2025 bills trading around 22.30%.
Analysts anticipate a calm atmosphere in the market today as participants turn their attention to the Treasury bills auction. Across the curve, the average yield declined at the short (-1 bp), mid (-2 bps), and long (-2 bps) segments.
Fixed income market analysts attributed the yield contraction to demand for the 79-day to maturity (-2bp), 170-day to maturity (-2bps), and 338-day to maturity (-2bps) bills, respectively.
Overall, the average benchmark yield closed at 24.29%. Conversely, the average yield expanded by 79 bps to 27.1% in the OMO bills segment in the secondary market. #Treasury Bills Yields Ease Ahead to 24.29% of Auction Naira Plummets to N1690/$ after CBN Priced Spot Rate High
