Treasury Bills Yield Falls Ahead of N670bn Auction
In the secondary market, the average yield on Nigerian Treasury bills (NTB) fell to 23.27% ahead of the Central Bank’s primary market auction (PMA) offer worth N670 billion.
The secondary market traded on a relatively quiet note, with a mild bullish bias as market players positioned ahead of the midweek auction. Ahead of the auction, the Treasury bills market attracted buying interest, supported by enhanced market liquidity.
LThe liquiditybalance in the money market switched to a surplus of more than N200 billion from a deficit position in the prior day.
Analysts at AIICO Capital Limited hinted that investors showed persistent demand, especially for longer-term instruments such as the December and January NTB and OMO papers.
However, matching offers were limited, as sellers were holding out for further yield declines ahead of auction. In an investors note, analysts at Trustbanc Financial Group Limited reported that yields moderated slightly across the curve, particularly at the long end.
Notably, the 25-Dec and 22-Jan bills were quoted at 20.80/20.45 and 20.70/20.35, respectively. Overall, the average benchmark yield declined by 5bps to close at 23.27%.
The Debt Office will offer ₦670 billion across standard maturities: the 91, 182, and 364-day papers. #Treasury Bills Yield Falls Ahead of N670bn Auction US Dollar Rises Ahead Macro data, Inauguration
