Treasury Bills Yield Prints at 5.14%, Naira Steadies Again
Treasury bills secondary market trades quietly albeit with bullish bias midweek as yield prints at 5.14% following a basis points decline while Naira steadies for third days in the investors and exporters foreign exchange window.
Today, pressures eased on financial system liquidity as short term interest rates in the money market see downward adjustments compared with yesterday’s position.
Interbank rate dropped off 28 basis points to close at 13.48%, according to analysts note from Alpha Morgan Capital Limited.
The slowdown occurred as the Overnight (O/N) rate decreased by 0.05 percent to close at 13.95 percent as against the last close of 14.00 percent, and the Open Buy Back (OBB) rate decreased by 0.50 percent to close at 13.00 percent compared to 13.50 percent on the previous day.
The Nigerian local currency, naira, maintained a stable position against the United States dollar at the investors and exporters foreign exchange market again. Naira was unchanged at ₦415.10.
Most participants maintained bids between ₦404.00 and ₦444.00 per dollar, according to analysts note from FSDH Capital Limited.
Amidst quiet trading in the fixed income segment, the Nigerian Treasury Bills secondary market closed on a mildly positive note with average yield across the curve decreasing by 1 basis point to close at 5.14 percent from 5.15 percent on the previous day.
Average yield across the long-term maturities declined by 2 basis points, according to various analysts report reviewed by MarketForces Africa.
However, FSDH Capital said the average yields across short-term and medium-term maturities remained unchanged at 3.70 percent and 4.62 percent, respectively.
Nigerian Treasury Bills 8-Sep-22 (-22 bps) maturity bill witnessed buying interest, while yields on 19 days to maturity bills remained unchanged.
In the OMO bills market, the average yield across the curve closed flat at 5.48 percent, FSDH Capital said. Analysts noted that average yields across short-term, medium-term, and long-term maturities remained unchanged at 5.35 percent, 5.54 percent, and 6.04 percent, respectively.
In a generally cold situation, the Federal Government (FGN) bonds secondary market closed on a calm note as the average bond yield across the curve cleared higher by 1 basis point to close at 8.47 percent from 8.46 percent on the previous day.
The average yield across the short tenor of the curve increased by 2 basis points. However, the average yields across the medium tenor and long tenor of the curve remained unchanged.
In the corporate segment, Ardova PLC has successfully issued ₦11.44 billion Tranche A (7-year) series 1 fixed-rate bond and ₦13.86 billion Tranche B (10-year) series 1 fixed-rate bond under its recently established ₦60 billion bond issuance programme.
The Tranche A and Tranche B bonds are issued at a coupon rate of 13.30 percent and 13.65 percent, respectively, according to FSDH Capital.
Ardova hinted that the bonds are duly registered with the Securities and Exchange Commission, and an application will be made to list the bonds on the FMDQ Exchange. The company intends to use the proceeds to fund retail expansion projects.
FMDQ Exchange also approved the listing of the MTN Nigeria Communications PLC’s ₦110 billion series 1 senior unsecured fixed-rate bond under its ₦200 billion bond issuance programme on its platform. #Treasury Bills Yield Prints at 5.14%, Naira Steadies Again
Read Also: T-Bills Yield Steadies as Pressure on Naira Slowdown
